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CONCISE    TREATISE 


COMMERCIAL    BOOK-KEEPING, 


ELUCIDATING 


THE   PRINCIPLES    AND    PRACTICE    OF    DOUBLE    ENTRY   AND    THE 
MODERN   METHODS    OF    ARRANGING 


MERCHANTS'    ACCOUNTS. 


BY  B.   F.   FOSTER 

•I 


Book-keeping  Is  an  art  which  no  condition  of  life  can  render  useless,  which  must  contribute  to  the  advancement  of  all 
who  buy  or  sell— of  all  who  wish  to  keep  or  improve  their  possessions — of  all  who  desire  to  be  rich,  and  all  who  deaire  to 
be  wise.    Let  no  man  enter  into  business  while  he  is  ignorant  of  the  method  of  regulating  books.— Z>r.  Johtuon. 


SECOND    EDITION. 


BOSTON: 

PUBLISHED   BY   PERKINS   &,  MARVIN 
PHILADELPHIA:   HENRY  PERKINS. 

1837. 


Entered  according  to  Act  of  Congress,  in  the  year  1836, 

By  Perkins  &  Marvin, 

In  the  Clerk's  Office  of  the  District  Court  of  the  District  of  Massachusetts. 


PREFACE. 


*'  There  is  no  man,"  says  Dr.  Johnson,  "  who  is  not  in  some  degree 
a  merchant — who  has  not  something  to  buy  or  something  to  sell,  and 
who  does  not  therefore  want  such  instruction  as  may  teach  him  to  pre- 
serve his  affairs  from  inextricable  confusion." 

Every  individual  must  keep  accounts  in  some  manner ;  and  in  a 
country  like  ours,  where  men  of  speculation  and  enterprise  often  raise 
themselves  from  comparative  indigence  to  affluence  and  wealth,  a 
knowledge  of  Book-keeping  is  an  object  of  the  first  importance  to  the 
rising  generation  as  well  as  to  the  majority  of  adults.  As  a  general 
study,  this  art  is  too  much  neglected.  It  is  singular  how  little  care  is 
taken,  even  among  merchants,  to  come  at  the  right  methods  of  prac- 
tising it,  and  how  few  bestow  any  thing  like  that  attention  which  it 
intrinsically  merits.  In  Holland  it  has  become  a  proverb,  that  the  man 
who  fails  in  business  did  not  understand  accounts  ;  and,  in  fact,  nine 
cases  of  insolvency  out  of  ten  arise  from  want  of  method  in  keeping 
books.  The  utility  of  Book-keeping  is  therefore  too  obvious  to  be 
insisted  upon. 

The  losses  and  embarrassments  occasioned  by  its  neglect,  terminate 
so  often  in  ruin,  that  it  is  equally  the  interest  and  duty  of  every  person 
to  make  himself  master  of  the  most  perfect  and  efficient  system  before 
entering  upon  the  active  pursuits  of  life.  To  the  merchant,  a  knowl- 
edge of  this  art  is  absolutely  indispensable  ;  and  the  affairs  of  the 
mechanic,  the  lawyer,  and  the  doctor,  as  well  as  the  man  of  leisure, 
require  a  systematic,  self-verifying  record  of  accounts  : — a  want  of 
which  has  ruined  thousands  of  industrious  and  enterprising  men. 

Independently  of  its  pecuniary  advantages,  the  study  of  Book-keeping 
recommends  itself  as  a  means  of  intellectual  culture,  affording,  as  it 
does,  an  ingenious  and  beautiful  illustration  of  the  harmony  of  method 
and  the  use  of  numbers. 


u2mH'77 


4  PREFACE. 

The  Italian  method  of  Book-keeping  affords,  unquestionably,  valu- 
able facilities  for  regulating  and  elucidating  intricate  or  complex 
accounts ;  and  no  person  who  is  ignorant  of  its  principles  can  be  an 
accomplished  book-keeper.  The  name  of  its  inventor  is  unknown, 
but  the  approbation  of  competent  judges  has  been  bestowed  upon  his 
art  during  four  centuries,  and  unless  a  more  satisfactory  method  can 
be  devised,  it  will  continue  to  deserve,  as  it  has  uniformly  received,  the 
preference  of  the  commercial  world. 

Absolute  perfection  in  accounts  has  often  been  arrogated  by  writers 
upon  this  subject ;  but  perfection  never  has  been  and  never  can  be 
attained.  However  correct  an  art  may  be  in  theory,  its  practice  is 
inevitably  subject  to  errors  ;  and  no  system  liable  to  intentional  neglect 
or  accidental  perversion,  is  secure  from  the  arts  of  the  fraudulent  or 
the  evil  consequences  of  carelessness. 

The  fundamental  principles  of  Double  Entry  are  as  infallible  in  their 
application  as  their  operation  is  extensive  ;  in  practice,  however,  they 
are  exposed  to  all  the  moral  and  mental  imperfections  of  the  account- 
ant : — they  are  neither  exempt  from  the  defects  of  ignorance — the 
errors  of  indolence — nor  the  practices  of  fraud, — and  frequent  and 
careful  investigation  on  the  part  of  the  proprietor  himself,  is  scarcely 
sufficient  to  render  him  secure  from  such  evils,  where  those  who  are 
intrusted  with  the  management  of  his  books  and  accounts,  are  not 
entitled  to  implicit  confidence. 

The  equality  of  debits  and  credits  is  the  great  systematic  proof  in 
Book-keeping.  This  proof,  however,  is  of  a  negative  nature  : — icithout 
it  the  books  cannot  be  correct ;  but  with  it  they  may  be  incorrect.  It 
affords  no  check  whatever  on  the  first  or  primary  entries,  nor  against 
those  errors  which  are  neutralized  by  counter-entries  so  as  not  to  affect 
the  equilibrium  of  debits  and  credits.  This  neutralization  of  errors,  it 
should  be  observed,  generally  originates  in  design  and  fraud. 

The  principal  cases  in  which  errors  can  be  committed  in  the  secon- 
dary entries,  without- affecting  the  equality  of  debits  and  credits,  are  as 
follows  : — 

1.  One  Dr.  entry  may  be  short-posted,  and  another  over-posted  the 
same  amount. 

2.  One  Cr.  entry  may  be  short-posted,  and  another  over-posted  the 
same  amount. 

3.  A  Dr.  and  Cr.  entry  may  be  equally  short-posted. 

4.  A  Dr.  and  Cr.  entry  may  be  equally  over-posted. 

5.  Similar  cases  may  occur  in  the  addition  of  accounts. 

6.  Similar  cases  may  occur  in  the  transfer  of  accounts. 

7.  Similar  cases  may  occur  in  the  entry  and  carrying  down  of 
haJances. 


PREFACE.  5 

8.  Another  species  of  error  consists  in  posting  an  amount  correctly 
to  the  debit  or  credit  side,  but  to  a  wrong  account; — thus  $100, 
which  properly  belongs  to  a  personal  account,  may  be  posted  to  a 
nominal,  or  property  account,  without  the  cognizance  of  the  systematic 
proof 

The  common  check  against  such  fraudulent  errors  is  that  of  calling 
over,  comparing  and  examining  the  books,  by  two  persons,  neither  of 
whom  posted  the  entries ;  and  all  the  additions  and  transfers  must  be 
revised  and  examined,  as  well  as  the  general  balance  itself 

A  book-keeper  of  practical  experience,  habitual  accuracy,  and  tried 
integrity,  is,  however,  of  more  value  than  all  the  forms  and  checks  that 
can  be  invented. 

The  object  of  the  present  compilation  is,  to  furnish  schools  and 
academies  with  a  treatise  on  Book-keeping,  so  simple  in  its  illustra- 
tions, as  to  be  easily  understood  by  those  who  are  unacquainted  with 
the  art ;  and  yet  so  comprehensive,  as  to  afford  all  the  information 
requiwite  for  the  practical  accountant.  How  far  the  author  has  been 
successful,  is  for  others  to  decide.  His  aim  has  not  been  to  promul- 
gate new  or  fanciful  theories  ;  but  rather  to  select  information  from  the 
best  sources,  and  to  embody  the  excellencies  of  the  most  approved 
writers  upon  the  subject.  The  treatise  of  Morrison,  which  undoubt- 
edly possesses  great  merit,  is  the  basis  of  the  present  publication.  The 
author  is  indebted  to  the  able  work*of  Cronhelm,  for  many  useful  hints 
and  much  valuable  matter.  He  has  also  made  free  use  of  the  article 
Book-keeping,  in  McCulloch's  Dictionary  of  Commerce, — written  by 
one  of  the  official  assignees  under  the  new  British  bankrupt  act, — 
which,  says  McCulloch,  "  exhibits  a  view  of  the  art  as  actually  prac- 
tised in  the  most  extensive  houses  in  London^  The  exemplifications 
in  the  following  pages  are  conformable  to  the  system  there  laid  down  ; 
and  the  rules  and  directions,  it  is  believed,^  are  not  only  full  and  ex- 
plicit, but  perspi<iuous  and  comprehensive.  By  divesting  the  science  of 
numerous  intricate  terms  and  complicated  entries,  which  never  should 
be  introduced  in  the  puzzling  form  adopted  by  some  authors,  and  by 
retaining  such  examples  only  as  wer^  necessary  to  elucidate  its  theory, 
the  art  is  so  simplified  that  its  principles  are  easily  comprehended, 
whilst  their  application  to  every  transaction  in  trade  is  rendered 
apparent. 

The  author  has  given  the  most  studious  attention  to  the  subject,  and 
has  availed  himself  of  many  favorable  opportunities  of  becoming  ac- 
quainted with  the  modern  improvements  in  this  art.  And,  in  addition 
to  several  years'  practice  as  book-keeper  in  an  extensive  mercantile 
establishment,  he  has  had  much  experience  in  preparing  young  men 


PREFACE. 


for  the  business  of  the  counting-house.  In  the  present  work  he  has 
endeavored  to  unite  practical  knowledge  with  elementary  instruction, 
and  to  illustrate  and  exemplify  the  improvements  which  time  and 
experience  have  effected  in  the  arrangement  and  classification  of 
merchants'  accounts. 


New  York  Commercial  Academy, 
No.  183  Broadway,  1837. 


ADVERTISEMENT  TO  THE  SECOND  EDITION. 

The  present  edition  of  this  work  has  been  carefully  revised,  and 
in  many  particulars  materially  improved.  In  order  to  facilitate  the 
process  of  teaching,  a  series  of  transactions,  introductory  to  Set  I.  has 
been  added,  and  the  rules  for  Journalizing,  Posting,  Balancing,  &,c. 
have  been  rendered  clear  and  explicit.  The  explanatory  notes  and 
observations,  Chapter  II.,  will,  it  is  believed,  afford  the  student  much 
assistance  towards  understanding  the  theory  of  the  art.  To  render 
the  work  still  more  useful  to  merchants  and  men  of  business,  an  ex- 
tensive article  on  Equation  of  Payments,  together  with  a  Time 
Table,  has  been  appended,  and  the  publishers  trust  that  this  edition 
will  be  still  more  worthy  of  attention. 

• 
March,  1837.  • 


CONTENTS. 


Page 

On  the  Study  of  Book-keeping,       .      *  .      '  .        .        .      '  .        .  9 

Directions  for  Teaching  this  work,          .        .        ,        .        .        .  15 

Origin  and  Progress  of  Book-keeping, 17 

Theory  of  Double  Entry — Principle  of  Equilibrium,      ...  23 

Italian  Method — Modem  Practice — Subsidiary  Books,    ...  30 

Explanation  of  the  Ledger, 35 

Rules  for  Journalizing, 38 

Remarks  on  Monthly  Journalizing, 41 

Directions  for  Posting  and  Balancing  the  Ledger,    ....  43 

Proof  of  Book-keeping, 49 

Definition  of  Merchants'  Accounts. 

I.  Bills  of  Parcels, 52 

II.  Invoices, 52 

•III.  Account  Sales, 53 

IV.  Bills  or  Promissory  Notes, 53 

V.  Accounts  Current, 56 

Method  of  Journalizing  Monthly  Exemplified. 

Cash  Book,  illustrated, 58 

Bill  Book, 59 

Invoice  Book, 61 

Book  of  Shipments, 62 

Account  Sales  Book, 63 

Form  of  Accounts  Current, 64 

Queries  and  Answers  on  the  Principles  and  Practice  of 
Book-keeping. 

I.  Ledger  Accounts,      ........  67 

II.  Journalizing, 68 

III.  Posting  and  Comparing  the  Books, 71 

IV.  Balancing  the  Ledger,       .......  72 

V.  General  Extract  and  Proof, 74 

VI.  Merchants'  Accounts, 75 

VII.  Partnership  or  Company  Accounts,           ....  76 


8  CONTENTS. 

Remarks  on  Teaching, 78 

Explanatory  Notes  and  Observations, 101 

SET  I.    RETAILERS'  BOOKS  EXEMPLIFIED. 

Double  Entry  applicable  to  Retail  trade, 106 

Cash  Book,       .        .        .     ♦ 107 

Day  Book, .        .        .        .  Ill 

Journal, 117 

Ledger, 123 

Trial  Balance,  &c.  Set  I., .        .  129 

SET  II.    MERCHANTS'  ACCOUNTS  EXEMPLIFIED. 

Cash  Book, 133 

Day  Book, — Remarks  on 140 

Journal, 149 

Ledger, 163 

Trial  Balance,  &c.  Set  IL, 175 

Bill  Book,         .        .        .        .' 177 

Improved  Plan  of  a  Journal, 181 

Explanation  of  Commercial  Terms, 187 

Equation  of  Payments, 192 

Table  of  Time, 200 


Errata. — At  page  88,  thirteenth  line  from  top,  for  "  in  favor  of  Holmes  &  Son,"  read  payable 
to  my  order.  Page  89,  omit  "  in  favor  of  Holmes  &  Son."  Page  95,  Stock  Account,  first  line,  for 
"  By  Stock,"  read  By  Cash.  Cash  Account,  same  page,  eleventh  line,  for  "  By  Cash,"  read  Con- 
signment Charges,  Page  113,  for  30th  February ,  lesid  28th,  Page  119,  the  same.  Page  141,  last 
line,  for  5,607,  read  5,760.    Page  157,  ninth  line  from  bottom,  for  "  Vanderpoole,"  read  Vanderloo. 


INTRODUCTION 


ON    THE    STUDY    OF    BOOK-KEEPING QUALIFICATIONS    OF    A    MER- 
CHANT  PRACTICAL    DIRECTIONS. 

A  PRACTICAL  knowledge  of  Book-keeping  is  considered  by- 
many  as  unattainable,  except  by  attending  for  years  to  the  daily 
routine  of  a  counting-house.  If  this  be  understood  of  any 
particular  form  or  arrangement  of  merchants'  accounts,  it  may 
be  true ;  but  if  it  be  applied  to  the  established  principles  of 
Double  Entry,  it  is  certainly  erroneous.  Although  most  mer- 
cantile houses  have  some  peculiarities  in  the  method  of  keeping 
books,  according  to  the  nature  and  extent  of  their  business,  yet 
the  essentials  are  the  same  in  all,  and  he  who  is  really  conversant 
with  the  fundamental  principles  of  the  art,  will  scarcely  find 
himself  at  a  loss  for  twenty-four  hours  in  any  counting-house 
whatever. 

The  principal  reason  why  so  few  succeed  in  obtaining  a 
practical  knowledge  of  Book-keeping,  at  school,  proceeds  from 
the  imperfect  manner  in  which  it  is  taught,  which  is  seldom 
any  other  than  that  of  requiring  the  learner  to  copy  the  Day 
Book,  the  Journal  and  the  Ledger  from  some  obsolete  treatise ; 
or  if  the  transactions  be  journalized  and  posted  properly,  little 
or  no  pains  are  taken  to  explain  and  illustrate  the  rules  and 
principles  upon  which  the  art  is  founded,  so  that  they  may  be 
clearly  comprehended.  The  balancing  of  the  Ledger,  at  once 
2 


10  ON  THE  STUDY  OF  BOOK-KEEPING. 

the  most  difficult  and  important  part  of  the  science  of  Book- 
keeping, is  rarely  attempted  and  seldom  understood.  The  mere 
perusal  of  any  treatise,  however  plain  its  rules,  and  however 
simple  its  exemplifications,  conveys  to  the  undisciplined  mind 
only  transient,  inadequate  ideas.  This  is  particularly  the  case 
when  the  subject  is  of  such  a  nature  as  to  require  a  more  than 
ordinary  degree  of  application.  In  such  instances,  how  very 
little,  in  comparison  with  the  whole,  does  the  strongest  capacity 
retain.  If  these  remarks  are  applicable  to  individuals  who  feel 
interested  in  a  subject,  with  how  much  greater  force  do  they 
apply  to  the  young.  They  who  are  accustomed  to  the  tuition  of 
youth,  well  know  that  their  natural  volatility  renders  them  satisfied 
with  the  most  vague  and  erroneous  conceptions.  Something, 
therefore,  is  necessary,  in  their  case,  to  induce  them  to  consider 
a  subject  in  all  its  bearings,  so  that  it  may  become  intelligible 
and  familiar  to  the  mind.  Nothing  conduces  more  to  this  end 
than  frequent  oral  interrogations,  pertinent  illustrations,  and  a 
series  of  exercises  on  the  various  rules. 

The  first  object  in  teaching  Book-keeping,  is  to  convey  to  a 
learner  clear  and  definite  ideas  of  the  terms  Dr.  and  Cr,  This 
can  only  be  done  by  patient  and  reiterated  drilling,  by  proper 
examples  in  the  different  cases  according  to  given  rules,  and  by 
arranging  the  transactions  in  such  a  manner  as  to  form  a  small 
set  of  books,  in  order  to  afford  a  simple  illustration  of  the  process 
of  Journalizing,  Posting  and  Balancing ;  going  on  in  this  way  till 
he  becomes  perfectly  familiar  not  only  with  the  principles  of  the 
art,  but  with  the  contents  and  uses  of  the  Subsidiary  Books, 
Invoices,  Accounts  Current,  Account  Sales,  &;c. 

In  no  study  can  the  interrogative  system  be  applied  with  more 
effect  than  in  that  of  Book-keeping.  For  example,  suppose  a 
transaction  were  given  to  the  learner  to  journalize.  When  he  has 
journalized  it  he  may  be  asked, — What  is  the  rule  for  stating  this 
transaction  ^  what  is  the  entry  ?  what  is  the  narrative  ?  how 
many  Drs.  are  there  ^  why  is  such  a  person  or  account  made 
Dr.  or  Cr.  1  always  giving  the  rule  by  which  he  is  directed  in 
connection  with  the  answer. 

When  he  has  finished  posting  and  balancing  his  books,  he  may 
be  asked,  what  the  Dr.  side  of  such  an  account  contains  .^  what 
the  Cr.  side.''   what  is  the  balance  of  an  account?   how  are  the 


ON  THE  STUDY  OF  BOOK-KEEPING.  11 

personal  accounts  closed  ?  how  are  the  accounts  of  property- 
closed  f  what  constitutes  the  proof  of  Book-keeping  ?  &c.  In 
brief,  the  learner  ought  to  be  continually  questioned  during  the 
whole  progress  of  the  study,  and  made  clearly  and  fully  to 
understand  the  reasons — the  why  and  wherefore  of  all  that  he 
does.  In  this  manner,  by  permitting  nothing  to  pass  unexplained, 
he  will  soon  become  familiar  with  the  art,  and  be  able  to  apply 
its  principles  to' the  various  transactions  in  trade. 

In  order  to  learn  any  thing  well,  it  is  indispensably  necessary 
to  begin  whh  first  principles,  and  proceed  gradually  as  these  are 
acquired.  In  this  branch  of  education,  the  rules  and  directions 
should  be  attentively  studied,  and  great  pains  taken  to  explain 
to  the  learner,  in  the  outset,  the  nature  of  Dr.  and  Cr.^  without 
which,  all  attempts  to  obtain  a  knowledge  of  these  terms  must 
inevitably  fail. 

After  pupils  have  obtained  a  competent  knowledge  of  the 
theory,  they  should  proceed  to  the  practical  part,  by  connecting 
systematic  Book-keeping  with  actual  transactions.  To  accom- 
plish this  object,  each  pupil  should  be  provided  with  a  nominal 
capita],  and  commence  business  on  his  own  account  : — if  in 
fictitious  notes,  so  as  to  have  the  appearance  of  money,  it  would 
have  a  better  efiect.  From  a  price  current,  with  which  they 
should  be  supplied,  to  assist  their  speculations,  and  give  them 
a  general  idea  of  the  rise  and  fall  of  the  markets,  they  may  select 
such  articles  as  they  please,  and  begin  to  trade  with  one  another. 
For  some  time  their  purchases  and  sales  should  be  for  ready 
money  only,  making  out  Invoices,  Bills,  &;c.,  and  giving  receipts 
for  every  thing. 

When  competent  so  far,  they  may  commence  dealing  on  credit; 
and  afterwards,  such  transactions  may  take  place  as  unite  both ; 
or  in  which  part  is  paid  and  the  rest  placed  to  account ;  or 
where  one  kind  of  goods  is  bartered  or  exchanged  for  another. 
Notes  and  Bills  may  now  be  introduced  and  go  through  all  the 
forms  of  real  business.  The  drawing,  accepting,  indorsing, 
presenting,  discounting,  paying,  and  protesting,  should  be  re- 
gularly attended  to,  and  such  circumstances  as  render  them 
invalid  pointed  out.  One  of  the  pupils  may  act  as  banker.  This 
will  enable  them  to  gain  an  accurate  acquaintance  with  checks, 
discounts,  interest,  &c. 


12  ON  THE  STUDY  OF  BOOK-KEEPING. 


Having  become  expert  in  the  method  of  conducting  inland  or 
domestic  trade,  they  should  personate  foreign  merchants.  Here 
the  more  complex  concerns  would  be  entered  into.  Foreign 
bills  of  exchange  would  be  given  and  received,  the  nature  of 
exchanges  elucidated,  as  well  as  the  most  advantageous  mode 
of  negotiating  bills ;  the  purchase  and  sale  of  goods  on  commis- 
sion or  consignment;  insurances,  as  they  apply  to  returns,  averages, 
and  losses ;  imports  and  exports ;  the  business  of  the  custom- 
house ;  and  the  nature  of  commissions,  freights,  duties,  drawbacks, 
and  debentures.  While  thus  employed,  intervals  should  be  al- 
lowed for  the  purpose  of  arranging  all  papers,  or  documents,  which 
may  come  into  their  possession,  in  the  most  methodical  and 
business-like  manner ;  and  of  composing  and  copying  all  letters 
relating  to  the  transactions  in  which  they  engage,  with  whatever 
else  appears  most  conducive  to  the  formation  of  an  intelligent  and 
respectable  mercantile  character. 

The  value  and  utility  of  this  plan  of  instruction,  when  properly 
and  efficiently  pursued,  are  obvious  ;  as  any  youth  who  shall  have 
gone  through  such  a  course,  will  be  found  an  important  acquisition, 
and  will  at  once  command  an  increased  salary  and  a  first  rate 
situation :  and  where  a  young  man  has  not  an  opportunity  of 
perfecting  his  commercial  education  in  a  counting-house,  as  is 
frequently  the  case,  the  comprehensiveness  of  such  a  course  of 
instruction  will,  in  a  considerable  degree,  supply  the  deficiency, 
and  enable  him  to  enter  into  business  with  many  important  ad- 
vantages. 

The  above  is  not  an  ideal  plan,  nor  is  it  impracticable ;  but  one 
that  has  been  acted  upon  with  the  greatest  success  ;  and  it  is  not 
too  much  to  say,  that  six  months'  instruction  in  this  manner  will 
afford  more  knowledge  on  the  subject,  than  several  years  spent  in 
a  counting-house.  When  placed  in  the  counting-house,  the  youth 
enters  a  school  with  this  disadvantage,  that  he  is  without  an  in- 
structor ;  for  it  is  neither  the  duty  nor  interest  of  the  senior  clerks 
to  deviate  from  their  own  labors  to  impart  that  information  which 
may  enable  another  to  supersede  themselves ;  and  the  merchant 
himself  is  generally  too  much  occupied  in  the  pursuit  of  gain  to 
explain  the  process  of  posting  and  balancing  books. 

Business  qualifications  with  most  clerks  are  the  result  of  mere 
habit ; — drilled  by  time  and  experience  into  mechanical  precision, 


QUALIFICATIONS  OF  A  MERCHANT.  13 

their  opinion  is,  that  others  should  undergo  the  same  discipline. 
Hence  the  young  clerk  has  to  pick  up  his  knowledge  as  he  can, 
and  he  gets  into  the  way  of  perfornning  his  duties  by  dint  of 
repetition  only. 

The  classical  and  mathematical  education  of  youth  is,  for  the 
most  part,  carefully  attended  to ;  but  those  common  branches 
which  are  the  most  necessary  to  the  merchant,  and  therefore  the 
most  useful,  are  strangely  overlooked  and  neglected. 

The  qualifications  which  conduce  directly  to  advancement  in 
any  mercantile  situation  are,  a  free,  rapid  hand-writing,  expertness 
in  figures,  a  practical  knowledge  of  book-keeping,  and  a  familiarity 
with  the  nature  and  arrangement  of  accounts;  but  it -is  a  well 
known  fact  that,  in  almost  every  instance  where  a  youth  is  placed 
in  a  counting-house,  he  is  for  the  first  two  or  three  years  a  mere 
errand-boy,  simply  because  his  penmanship  is  unfit  for  the  Journal, 
the  Ledger,  or  even  for  a  common  Bill  of  Parcels  ;  and  his 
knowledge  of  accounts  and  book-keeping  is  so  limited  that  he  can 
neither  calculate  interest,  equate  the  payment  of  an  account,  nor 
record  a  simple  transaction  with  accuracy.  If  youth  whose  views 
are  directed  to  commercial  pursuits,  instead  of  spending  three  or 
four  years  in  acquiring  what  is  of  no  use  in  business,  were  to 
devote  an  equal  period  in  the  attainment  of  a  thorough  knowledge 
of  figures,  merchants'  accounts,  and  book-keeping,  much  ad- 
vantage might  be  derived  both  to  themselves  and  the  community. 


The  following  qualifications  are  considered  indispensable  to  the 
well  informed  man  of  business  : — 

1.  He  should  write  with  ease  and  correctness  ;  be  expert  in 
commercial  calculations  ;  understand  Book-keeping  thoroughly  ; 
and  be  able  to  examine  Invoices,  Accounts  Current,  Charter 
Parties,  Policies  of  Insurance,  and  Bills  of  Exchange. 

2.  He  should  have  a  knowledge  of  the  weights,  measures,  and 
monies  of  the  principal  commercial  places  in  the  world  ;  and 

3.  A  thorough  acquaintance  with  the  general  routine  of  banking 
and  custom-house  business. 

4.  It  is  important  that  he  should  understand  precisely  and 
particularly  the  state  of  the  market,  the  quality  and  prices  of  the 


14  QUALIFICATIONS  OF  A  MERCHANT. 

articles  in  which  he  deals,  and  the  nature  of  the  business  in  which 
he  is  engaged. 

5.  He  ought  to  acquire  and  maintain  an  easiness  of  manner,  a 
suavity  of  address,  and  a  gentlemanly  deportment,  without  which 
the  finest  talents  are  oftentimes  incapable  of  realizing  the  brilliant 
expectations  which  they  induce  their  possessor  to  form. 

When  the  merchant  deals  extensively,  it  is  not  to  be  imagined 
that  he  can  spare  time  for  keeping  his  own  books ;  but  he  cannot 
be  intimately  acquainted  with  the  state  of  his  affairs,  if  he  does 
not  peruse  them  often.  Regular  accounts,  frequently  examined, 
will  contribute  more  to  prosperity  in  trade  than  great  address  and 
abilities  without  them. 

The  correct  man  of  business  is  punctual  in  his  engagements — 
does  nothing  carelessly  or  in  a  hurry — employs  no  one  to  perform 
what  he  can  conveniently  do  himself — sees  that  every  thing  about 
his  establishment  is  in  its  proper  place — keeps  his  business  from 
the  view  of  others — is  prompt  and  decisive  with  his  customers, 
and  is  careful  not  to  trade  beyond  his  capital.  He  prefers  short 
credits  to  long  ones,  and  cash  to  credit  transactions,  and  holds  it 
as  a  maxim,  that  he  whose  credit  is  suspected,  is  not  safe  to  be 
trusted.  He  is  clear  and  explicit  in  all  his  bargains — leaves 
nothing  to  memory  which  he  ought  to  commit  to  writing — keeps 
copies  of  all  important  letters,  and  has  every  document  relating  to 
bis  affairs  labelled,  classified,  and  put  in  order — is  constantly  at 
the  head  of  his  business — examines  his  accounts  regularly — sees 
through  every  transaction,  as  far  as  care  and  attention  will  enable 
him — balances  his  books  at  stated  times,  and  then  transmits  his 
accounts-current  to  his  correspondents — avoids  as  much  as  possible 
all  accommodation  in  money  matters  where  there  is  the  least 
hazard — is  economical  in  his  expenditure,  always  living  within  his 
income — is  liberal  to  his  clerks — becomes  security  for  no  person 
— and  is  generous  only  when  urged  by  motives  of  humanity  and 
benevolence.     Such  is  the   character  of  the    upright   man   of 

BUSINESS. 


PRACTICAL  DIRECTIONS.  15 


DIRECTIONS  FOR  TEACHING  THIS  WORK. 

The  learner  should  first  transcribe,  in  a  neat,  plain  hand,  the 
Transactions,  which  compose  the  Introductory  Exercises  to  Set  I. 
into  a  book  ruled  for  the  purpose,  leaving  the  right  hand  page 
blank  for  the  Journal  entries.  When  this  is  done,  the  explanation 
of  the  Ledger,  Chapter  4,  and  the  rules  for  JournaHzing,  Chapter 
5,  should  be  attentively  studied.  The  perusal  of  the  Notes  and 
Observations  contained  in  Chapter  11,  will  enable  the  tyro  to 
understand  more  clearly  the  process  of  Journalizing  and  the  nature 
of  the  accounts  in 'the  Ledger.  Whenever  at  a  loss  how  to  form 
the  Journal  entry  of  any  transaction,  he  must  refer  to  the  instruc- 
tions, pages  68 — 70,  or  have  recourse  to  his  teacher.  To  prevent 
mistakes,  the  Journal  entries  should  be  first  written  upon  a  slate 
or  waste  paper,  and  then  compared  with  the  printed  copy,  and  all 
the  errors  carefully  corrected  before  the  entries  are  copied  by 
the  learner  into  his  manuscript. 

The  Journal  being  completed,  the  next  process  is  to  post  the 
items  to  their  respective  accounts  in  the  Ledger.  To  save  unne- 
cessary trouble,  the  titles  of  each  account  may  be  copied  from  the 
Index,  page  95,  and  it  will  be  found  more  convenient  to  place 
but  one  account  on  a  page.  Chapter  6  contains  explicit  direc- 
tions for  posting,  balancing,  &;c.  to  which  the  student's  attention 
must  now  be  directed.  Particular  instructions  for  balancing  the 
Ledger  are  given  at  pages  48,  73,  and  74. 

The  queries  on  the  principles  and  practice  of  Book-keeping, 
Chapt.  9,  with  their  answers,  must  be  committed  to  memory. 

SET  I,  RETAILER'S  BOOKS. 

The  transactions  in  this  Set  are  to  be  Journalized,  monthly, 
from  the  Cash  Book  and  the  Day  Book,  viz.  each  month's  occur- 
rences are  classed  together  in  the  Journal  and  the  totals  carried  in 
one  sum  to  the  Ledger.  Chapter  8,  exhibits  a  complete  synopsis 
of  the  modern  practice  of  Book-keeping.  It  contains  a  full 
exemplification  of  the  method  of  Journalizing  from  the  Subsidiary 
Books,  together  with  the  forms  of  invoices,  account  sales,  bills  of 
parcels,  he. ;  for  this  reason  it  ought  to  be  carefully  studied.  The 
learner  should  transcribe  the  Cash  Book,  pages  108  and  109, 
and  the  Day  BooJc^  pages  112 — 115,  into  a  blank  book  prepared 


16  PRACTICAL  DIRECTIONS. 

for  the  purpose.  The  cash  transactions  are  to  be  Journalized 
from  the  Cash  Book,  and  the  purchases,  sales,  &c.  from  the  Day 
Book,  according  to  the  rules  at  pages  39  and  40.  To  facilitate 
the  process  of  Journalizing  monthly,  the  items  belonging  to  the 
same  account  should  first  be  arranged,  according  to  their  dates, 
on  a  slip  of  paper.  Take,  for  example,  the  month  of  February, 
page  112.  Fold  a  sheet  of  paper  in  two  parts  and  arrange  the 
purchases  and  sales  under  the  proper  titles,  as  follows  : — 


FEBRUARY. 


Sundries,  Dr.  to  Merchandise. 

C.  Hammond,  2d,  15th. 

B.  Canfield,     4th,  10th,  25th. 


Merchandise,  Dr.  to  Sundries. 

To  D,  Evans,  6th. 

To  Bills  Payable,  28th. 


E.  Ford,  9th,  12th. 

A  similar  index  to  the  transactions  must  be  formed  for  each 
month,  previous  to  journalizing.  This  being  done,  turn  by  the 
help  of  the  date  to  the  transaction,  and  when  various  purchases, 
he.  have  been  made  during  the  month  by  the  same  person,  enter 
the  amounts  in  the  inner  column,  and  carry  the  total  only  to  the 
Ledger. 

SET  II.— MERCHANTS'  ACCOUNTS. 

This  is  a  Partnership  concern,  and  is  intended  to  complete 
the  course.  The  principal  difficulty  in  keeping  the  books  of 
a  Copartnership,  is  the  division  of  the  Profits  or  Losses  ;  stating 
the  partner^s  accounts,  and  closing  the  Books.  These  particulars 
are  fully  explained  at  page  76. 

It  will  be  observed  that  the  entries  arising  at  balancing  in  this  Set, 
are  carried  through  the  Journal  agreeably  to  directions  at  p.  50. 

The  learner  should  write  with  neatness  and  accuracy,  make  the 
looped  letters  above  and  below  the  line  short,  and  be  particular  to 
avoid  what  is  termed  "flourishes."  He  is  strongly  recommended 
to  pay  the  strictest  attention  in  referring  from  one  book  to  another, 
in  order  that  the  reference  may  be  correct — to  compare  carefully 
the  Gash  Book  and  Day  Book  with  the  Journal,  and  the  Journal 
with  the  Ledger — to  make  his  additions  with  accuracy,  and  to  do 
nothing  without  study  and  reflection.  His  attention  to  these 
particulars,  together  with  the  rules  and  observations  contained  in 
the  course  of  the  present  work,  will,  with  proper  application, 
enable  him  to  become  an  Experienced  Book-keeper  and 
Accountant, 


i 


eUU^ 


BOOK-KEEPING. 


\ 


CHAPTER   I. 

ORIGIN    AND    PROGRESS    OF    BOOK-KEEPING. 

The  necessity  of  some  record  of  property,  and  of  the  transac- 
tions affecting  it,  must  have  been  felt  in  the  earliest  ages  of  society. 
The  nature  of  the  first  rude  expedients  for  this  purpose,  may  be 
inferred  from  the  allusions  of  ancient  authors,  from  the  customs  of 
yet  uncivilized  tribes,  and  from  the  practice  of  ignorant  and  unin- 
structed  persons  within  the  circle  of  our  own  observation. 

Long  before  the  invention  of  figures,  men  would  begin  to 
designate  their  simple  possessions  and  debts,  by  collections  of 
pebbles,  of  shells,  or  of  small  pieces  of  wood,  in  which  size  or 
color  would  represent  the  kind  of  property,  and  number  its  extent. 
The  explorers  of  Africa,  and  of  the  Pacific  Islands,  occasionally 
narrate  these  rude  devices,  in  which  we  may  discern  not  merely 
the  dawn  of  accounts,  but  the  first  germ  of  that  symbolizing 
principle  which  has  generated  the  noblest  inventions,  and  the  most 
fatal  errors  of  mankind. 

Another  contrivance  consisted  of  notches  cut  on  rods  or  canes. 
These  fixed  and  preservable  marks  were,  in  some  respects,  supe- 
rior to  loose  counters,  and  bear  to  figures  the  same  relation  as 
sculptured  sketches  to  written  language.  The  ancient  Peruvians 
used  the  kindred  expedient  of  knotted  strings,  which  they  em- 
ployed not  only  as  numerical  symbols,  but  also  as  historical  hiero- 
glyphics. To  the  age  of  notches,  must  obviously  be  referred  the 
3 


18  ORIGIN    AND    PROGRESS 


n 


invention  of  tallies.  It  was  truly  an  ingenious  device,  to  split  the 
rod,  so  that,  by  uniting  its  halves  to  receive  the  common  indenture, 
each  party  might  possess  a  proof,  as  wfell  as  record  of  the  transac- 
tion. The  tallies  were  real,  though  rude  accounts  current,  the 
conformity  of  which  was  ascertained  at  every  new  transaction ; 
and  they  exhibit  the  first  conception  of  a  check  on  numerical 
records. 

The  practice  of  scoring,  presents  us  with  a  third  class  of  ex- 
pedients for  registering  accounts.  It  was  probably  at  first  merely 
a  picture  of  the  counters  or  notches  that  preceded  it;  but  it  was 
an  important  advance,  and  opened  the  way  to  all  those  abbrevia- 
tions and  improvements  that  were  crowned  by  our  present  system 
of  numbers.  Of  the  primitive  modes  of  recording  accounts,  we 
possess  various  testimonies,  among  which,  that  of  language  is  not 
the  least  observable.  The  word  calculate  is  derived  from  calculus, 
the  Latin  term  for  pebble ;  when  accounts  disagree,  we  still  say 
they  do  not  tally ;  and  when  we  have  paid  a  debt,  that  we  have 
rubbed  off  the  scores. 

The  original  pebbles  disposed  in  parallel  grooves,  or  exchanged 
for  perforated  beads  strung  on  wires,  were  marshalled  to  the  most 
intricate  evolutions  of  numbers  in  the  swanpan  of  the  Chinese,  in 
the  abacus  of  the  Greeks  and  Romans,  and  in  the  counting-boards 
retained  in  Europe  long  after  the  fall  of  the  western  empire. 
The  swanpan  is  still  the  universal  ready  reckoner  of  China,  and 
an  instrument  of  the  same  description  is  used  in  Russia. 

The  use  of  tallies  is  rapidly  decreasing  in  England.  The  custom 
of  scores  is  also  much  on  the  decline,  but  it  may  yet  be  traced  on 
the  chimney-board  of  the  alehouse,  and  the  wainscot  of  the  village 
shop.  It  must,  however,  be  observed,  that  the  idea  of  durability 
seems  to  have  been  excluded  from  all  these  primitive  attempts  at 
accounts.  When  the  balance  was  paid,  the  record  was  no  longer 
preserved  ; — the  counters  were  swept  from  the  board  ;  the  tallies 
were  broken ;  the  scores  were  rubbed  out. 

The  Athenians  were  the  most  commercial  of  the  Grecian  states; 
yet  at  the  period  of  their  highest  refinement,  they  do  not  appear  to 
have  kept  permanent  accounts.  Aschines  in  his  Oration  for  the 
Crown,  speaking  of  balanced  accounts,  says,  that  the  pebbles  were 
cleared  away  and  none  left.  His  rival,  Demosthenes,  repealing 
his  expression,  adds,  that  as  many  counters  were  taken  up  as  were 


OF    BOOK-KEEPING.  19 

laid  down.  It  is  evident,  therefore,  that  the  ancients,  In  keeping 
their  accounts,  did  not  separately  draw  together  the  credits  and  the 
debits,  but  set  down  pebbles  for  the  former,  and  took  up  pebbles 
for  the  latter.  As  soon  as  the  board  became  cleared,  the  opposite 
claims  were  exactly  balanced. 

A  similar  inference  of  the  want  of  durable  accounts  may  be 
drawn  from  the  parable  of  the  unjust  steward.  He  relinquished 
to  his  lord's  debtor  the  true  bill  for  one  hundred  measures  of  oil, 
and  directed  him  to  write  quickly  a  new  bill  for  fifty.  But  had 
there  been  any  permanent  record  of  the  debt,  the  fraud  would  have 
been  unavailing,  as  it  must  have  been  detected  by  the  account. 

The  custom  of  crossing  out  which  still  exists  among  retailers 
and  mechanics,  may  be  considered  as  a  vestige  of  the  fugitive 
record  of  accounts. 

About  the  commencement  of  the  Christian  era,  the  Romans  had 
obtained  a  permanent  system  of  accounts,  corresponding  in  all 
probability  to  that  of  Single  Entry.  A  familiar  passage  in  Pliny, 
describes  the  arrangement  of  debits  and  credits  on  opposite  pages ; 
and  in  other  writers,  there  are  allusions  to  the  practice  of  posting, 
and  to  a  distinction  of  books  analogous  to  that  of  Waste  Book  and 
Ledger. 

To  the  researches  of  the  ingenious  Simon  Stevin,  we  are  chiefly 
indebted  for  this  view  of  Book-keeping ;  but  his  opinion,  that  the 
Romans  derived  it  from  the  Greeks,  is  far  from  being  supported 
by  the  practice  at  Athens  in  the  age  of  Demosthenes.  Though 
the  Romans  were  not  originally  a  commercial  people,  it  must  be 
considered  that,  at  the  period  in  question,  they  held  united  in  peace 
as  well  as  conquest,  all  the  shores  of  the  Mediterranean.  This 
state  of  things  would  be  highly  favorable  to  the  extension  of  com- 
merce ;  and  its  effects  are  testified  by  history,  in  the  numerous 
companies  of  merchants  established  in  the  maritime  cities  of  the 
empire.  It  is,  therefore,  not  improbable  that  Rome  herself  de- 
serves the  honor  of  inventing  the  method  of  Single  Entry :  but  if 
an  external  origin  must  yet  be  sought,  it  may  be  no  very  pre- 
sumptuous suggestion  to  indicate  Carthage.  That  interesting  but 
unfortunate  republic  exceeded  in  commerce  all  the  nations  of 
antiquity  ;  and  from  her  Asiatic  origin  and  connections,  she  pos- 
sessed, in  all  probability,  a  system  of  numerals  far  more  perfect 
than  that  of  Rome.    These  circumstances  may  justify  the  inference. 


20  WORKS  ON  BOOK-KEEPING. 

that  her  commercial  records  would  enjoy  a  proportionate  degree  of 
superiority;  and  that  either  directly  or  mediately,  by  her  colonies 
in  Sicily  and  Spain,  she  may  have  communicated  the  art  to  her 
rival  and  destroyer.  The  inglorious  destruction  of  the  Carthaginian 
records  has  placed  this  conjecture  beyond  determination,  and, 
along  with  it,  some  of  the  most  interesting  questions  that  regard 
antiquity. 

When  commerce  and  literature  began  to  revive  from  their  long 
slumber  during  the  dark  ages,  the  progress  of  Book-keeping,  and 
of  every  science  connected  with  numbers,  was  materially  facilitated 
by  the  introduction  of  the  Indian  notation.  That  beautiful  system 
was  brought  into  Spain  by  the  Arabian  conquerors  of  that  country, 
thence  communicated  to  Italy,  and  gradually  diffused  over  Europe. 
Venice  was  in  those  days  the  great  emporium  of  Oriental  and 
Western  Commerce ;  and  the  adoption  of  denary  numbers  by  her 
merchants,  was  soon  followed  by  the  admirable  system  of  accounts, 
named  the  Italian  Method,  from  the  country  of  its  invention,  and 
Double  Entry  from  the  arrangement  of  its  Ledger.  Had  it 
received  a  scientific  name,  it  would  have  been  called  the  system  of 
Eq,uilibrium  ;  or  with  greater  justice  it  ought  to  have  recorded 
the  name  of  its  inventor,  now  forgotten  and  unknown. 

The  first  treatise  on  the  subject  appeared  at  Venice,  in  1495, 
which  was  written  by  the  famous  Lucas  Paciolus,  better  known 
by  his  local  name  De  Burgo.  This  work  and  the  commercial 
connections  of  Italy,  gradually  diffused  the  science.  In  1531, 
John  Gottlieb  published  at  Nuremburg  the  first  German  treatise ; 
and,  in  1543,  Hugh  Oldcastle  bestowed  the  same  benefit  on 
England.  Simon  Stevin  published  in  1602,  at  Leyden,  in  the 
French  language,  his  celebrated  work  on  the  application  of  Book- 
keeping to  finance. 

In  1652,  Collins,  a  well-known  accountant  in  London,  published 
a  large  work  entitled  '^  An  Introduction  to  Merchants^  Accounts,'''^ 
which  continued  during  a  century  the  best,  or  to  speak  more  cor- 
rectly, the  least  imperfect  publication  on  the  subject.  About  a 
hundred  years  later,  in  1768,  John  Mair  published  ^^Book-keeping 
Modernized, ^"^  a  work  containing  a  correct  statement  of  the  prin- 
ciples of  Double  Entry,  but  in  other  respects  less  clear  and  concise 
than  it  might  have  been,  had  the  author  adopted  the  real  practice 
of  merchants,  who  at  that  time  had  greatly  simplified  their  plan 
of  keeping  accounts. 


WORKS  ON  BOOK-KEEPING.  21 

A  number  of  other  publications  on  Book-keeping  appeared  in 
succeeding  years,  differing  but  little  in  arrangement.  The  most 
generally  approved  are  those  of  Hutton,  Hamilton,  Gordon, 
Dowling,  Jackson,  Malcolm,  and  Webster. 

It  is  remarkable,  that,  with  a  few  exceptions,  all  the  foregoing 
authors  were  teachers  ;  and  though  their  profession  might  have 
rendered  them  well  qualified  for  explaining  the  principles  of 
Book-keeping,  it  was  not  likely  to  afford  opportunities  of  deducing 
their  theories  from  practice.  The  works  themselves  evidently 
show  that  those  writers,  in  general  followed  each  other's  plans, 
and  took  their  documents  from  printed  books  more  than  from  real 
business.  At  last,  in  J  789,  appeared  the  work  of  a  practical 
merchant,  under  the  title  of  "  A  Complete  System  of  Book- 
keeping,^^ by  Benjamin  Booth,  4to. 

Mr.  Booth  had  been  in  business,  first  at  New  York  and 
afterwards  in  London,  having  at  one  time  managed  an  extensive 
concern,  and  at  another  kept  a  complete  set  of  Books.  "  What  I 
now  offer,"  he  observes,  "  has  long  appeared  to  be  much  wanted. 
Many  are  the  bankruptcies  which  happen  in  trade  from  irregular 
accounts  only :  persons  are  employed  as  Book-keepers,  who  have 
got  little  more  than  the  theory  of  the  art  from  some  obsolete 
treatise.  The  disideratum  is  a  system  of  Book-keeping  drawn 
up  with  sufficient  ability  and  experience,  which  might  be  con- 
sidered as  a  standard  and  received  into  every  counting-house  as 
decisive  authority.  Those  works  that  I  have  seen,  appear  gen- 
erally to  have  been  written  by  persons  who  have  never  had  an 
opportunity  of  bringing  their  theories  to  the  test  of  experience. 
In  extensive  business,  it  is  almost  impossible  to  prevent  the  books 
from  getting  behindhand,  when  every  transaction  is  entered  singly 
by  itself.  The  system  I  have  laid  down,  possesses  the  simplicity 
of  Single,  with  the  advantages  of  Double  Entry.  All  extraneous 
matter  is  lopt  off  from  the  Journal,  and  the  Ledger  is  prevented 
from  swelling  to  an  enormous  size." 

The  favorable  expectation  excited  by  Mr.  Booth's  experience 
in  business,  was  fully  confirmed  by  his  book,  which  contains  a 
great  deal  of  information  in  short  compass,  unembarrassed  either 
by  minute  detail  or  fanciful  theory. 

Mr.  Booth's  system  differs  from  the  Italian  method,  in  dividing 
the  Waste  Book  into  various  Subsidiary  Books,  and  in  Journal- 


^ 


22  WORKS    ON    BOOK-KEEPING. 


izing  each  of  them  separately  once  a  month.  This  method  was 
rendered  elementary,  and  adapted  to  schools,  by  Dr.  Kelley 
in  1801. 

In  1818,  Mr.  Cronhelm  published  a  very  well  written  and  in- 
genious work  entitled  *'  Double  Entry  by  Single — a  new  method 
of  Book-keeping,  applicable  to  all  kinds  of  business,"  displaying 
both  an  extensive  and  comprehensive  knowledge  of  his  subject. 
There  are  many  writers  upon  Book-keeping  of  recent  date,  whose 
works  are  highly  meritorious  within  the  sphere  of  their  pre- 
tensions ;  but  the  object  of  most  of  them  has  been  to  illustrate 
and  exempHfy  the  old  Italian  method,  which  does  not  comport 
with  the  modern  practice  of  mercantile  houses. 


CHAPTER  II. 


THEORY    OF    DOUBLE  ENTRY PRINCIPLE   OF  EQ,UILIBRIUM CLAS- 
SIFICATION OF  ACCOUNTS SINGLE  AND  DOUBLE  ENTRY. 


Book-keeping  is  the  art  of  recording  property  so  as  to  exhibit, 
at  all  times,  the  value  of  the  whole  capital  and  of  each  of  its 
component  parts. 

As  a  science  susceptible  of  systematic  arrangement,  it  owes  its 
origin  to  the  invention  of  money.  Without  this  universal  symbol 
of  property,  Book-keeping  would  be  merely  a  series  of  memo- 
randa, incapable  of  that  beautiful  harmony  between  the  whole  and 
the  parts,  which  now  entitles  it  to  rank  among  the  exact  sciences. 
Without  the  relation  of  money,  a  man  might  keep  accounts  of 
various  kinds  of  property,  and  even  of  personal  debts  ;  but  he 
could  not  collect  the  different  parts  into  one  whole,  nor  state  his 
real  worth  by  any  other  method  than  an  enumeration  of  all  his 
possessions  and  debts.  Neither  could  he  accurately  calculate  his 
profit  or  loss  from  one  year  to  another,  unless  his  property  at  each 
period  should  happen  to  be  composed  of  parts  similar  in  nature, 
with  either  no  augmentations,  or  no  diminutions. 

A  merchant's  books  should  contain  a  true  statement  of  all 
branches  of  his  business,  the  connection  of  the  different  parts, 
and  the  result  of  the  whole ;  they  should  be  so  clear  in  every 
particular  which  relates  to  his  affairs,  and  so  well  arranged,  as 
to  afford  ready  information  on  every  point  on  which  they  are 
consulted. 

This  information  may  be  reduced  to  the  following  heads,  viz. 
1.  The  debts  owing  to  him,  and  those  which  he  owes  to  others. 


24  THEORY  OF  DOUBLE  ENTRY. 

2.  The  goods,  cash,  and  other  property  invested  by  him  in 
trade  ;  the  amount  sold,  or  otherwise  disposed  of  ^  and  the  quan- 
tity and  value  still  on  hand. 

3.  His  stock  or  capital  at  the  commencement  of  business ;  the 
profits  he  has  made,  or  the  losses  sustained ;  and  the  amount  of 
his  present  property. 

The  method  of  Book-keeping,  which  answers  these  purposes, 
must  be  founded  upon  the  principles  of  Double  Entry  ;  and  the 
plan  which  exhibits  these  particulars  most  clearly  and  concisely, 
is  best  adapted  to  the  nature  of  the  business. 

Mercantile  property  may  be  considered  as  a  whole,  composed 
of  various  parts.  The  component  parts  of  property  are  money, 
goods  and  personal  debts.  The  whole  mass,  or  capital,  is  techni- 
cally called  Stock. 

The  design  of  Book-keeping,  as  a  record  of  property,  is  to 
show  the  owner  at  all  times  the  value  of  his  whole  capital,  and 
of  every  part  of  it. 

The  component  parts  of  property  in  trade  are  in  a  state  of 
continual  transformation  ;  but  whatever  variations  they  undergo, 
and  whether  the  whole  capital  increase,  diminish  or  remain  sta- 
tionary, it  is  evident  that  it  must  constantly  be  equal  to  the  sum 
of  all  its  parts.  This  Equality  is  the  fundamental  principle  of 
Book-keeping.  It  will  at  once  give  the  reader  a  clear  idea  of  the 
nature  of  that  'proof,  which  is  so  highly  and  so  justly  appreciated. 
For,  if  the  Stock  Account  be  found  equal  to  the  collective  result 
of  all  the  other  accounts,  the  desired  proof  is  obtained  ;  but  if 
the  least  inequality  exists  between  them,  the  books  must  be  in- 
correct. 

The  clear  and  simple  principle  of  the  equality  of  the  whole  to 
the  sum  of  its  parts,  is,  therefore,  the  basis  of  Double  Entry. 
The  equality  of  Debtors  and  Creditors  is  the  immediate,  but  less 
obvious  consequence  of  this  principle,  and  may  be  considered  as 
the  general  law  for  its  observance.  Every  transaction  in  business 
being  virtually  a  transfer  between  two  accounts,  it  must  be  entered 
to  the  debit  of  the  one  and  to  the  credit  of  the  other.  In  Double 
Entry  Book-keeping,  these  two  balancing  entries  are  made  in  the 
Ledger ;  and  they  comprise  all  that  is  systematic  in  the  Italian 
method.      The  entries  in  the  Subsidiary  Books  and  the  Journal, 


1 


PRINCIPLE    OF    EQUILIBRIUM.  25 

are  merely  preparatory  arrangements,  unconnected  with  the  prin- 
ciple and  proof  of  accounts.  In  order  to  obtain  a  satisfactory- 
knowledge  of  Book-keeping,  it  is  important,  therefore,  to  ascertain 
the  real  principles  of  Accounts,  and  to  disentangle  them  from 
forms  with  which  they  have  long  been  confounded. 

It  is  a  primary  axiom  of  the  exact  sciences,  that  the  whole  is 
equal  to  the  sum  of  its  parts ;  and  on  this  foundation  rests  the 
superstructure  of  Double  Entry  /Book-keeping.  It  considers 
property  as  a  whole,  composed  of  various  parts  : — the  Stock 
Account  records  the  entire  capital ;  the  Money,  Merchandise,  and 
Personal  Accounts  record  the  component  parts.  Hence,  there 
must  necessarily  and  inevitably  be  a  constant  eq,uality  between 
the  Stock  Account,  and  all  the  other  Accounts. 

From  this  view  of  the  subject,  we  now  take  a  more  general 
consideration  of  property  as  a  mass  of  relations  between  debtors 
and  creditors.  The  application  of  the  terms  debtor  and  creditor 
is  originally  personal ;  but  it  is  extended  by  analogy  to  every  part 
of  property,  and  to  the  whole  capital  itself. 

A  man's  positive  property  consists  of  Cash,  Goods,  Bills 
Receivable,  and  Debts  Receivable  :  and  all  these  parts  are  con- 
sequently in  the  same  relation  to  him  as  proprietor.  But  the 
Personal  Accounts  bear  the  relation  of  debtors  :  therefore,  the 
others  equally  bear  this  relation  ;  and  Bills  Receivable,  Cash,  and 
Goods,  are  debtors  to  him  for  their  respective  amounts.  So  also 
with  the  negative  parts  :  persons  to  whom  he  owes  money  being 
his  creditors;  Bills  Payable  are  also  creditors  for  their  amounts. 

Thus  all  the  component  parts  of  property  are  distributed  into 
debtors  and  creditors ;  the  positive  parts  constituting  the  former 
and  the  negative  parts  the  latter.  Debtor  and  Creditor  being 
relative  terms,  the  one  always  implies  the  other,  and  cannot  exist 
without  it.  If,  therefore,  for  every  debtor  there  must  be  an  equal 
creditor,  and  for  every  creditor  an  equal  debtor,  it  follows  that  the 
respective  sums  of  these  equalities  must  always  be  equal. 

From  the  mutual  relations  of  debtors  and  creditors,  it  is  evident 
that  every  transaction  in  business  belongs  to  two  accounts  ;  and 
must  be  entered  on  the  debtor  side  of  the  one,  and  on  the  creditor 
side  of  the  other.  For  instance,  when  a  person  becomes  indebted 
to  us,  the  article  he  owes  must  be  entered  to  the  debit  of  his 
account ;  and  if  it  be  for  money  paid,  it  must  be  entered  to  the 
4 


26  PRINCIPLE    OF    EQUILIBRIUM. 

credit  of  cash  ;  if  for  goods  sold,  it  is  entered  to  the  credit  of 
merchandise  ;  or  in  whatever  way  the  debt  arises,  it  is  entered  to 
the  credit  of  some  other  account,  as  well  as  to  the  debit  of  the 
person's  account  who  owes  it.  And  in  like  manner,  when  we 
become  indebted  to  any  person,  the  article  we  owe  must  be  en- 
tered to  the  credit  of  his  account ;  if  it  be  for  money  received,  it 
is  also  entered  to  the  debit  of  cash ;  and  if  for  goods  bought,  it  is 
entered  to  the  debit  of  merchandise. 

In  this  manner,  every  item  in  any  account  corresponds  to  some 
other  item  on  the  opposite  side  of  a  different  account, — in  other 
words,  the  same  sum  is  entered  on  the  debit  side  of  one  account, 
and  on  the  credit  side  of  another  ;  and  it  consequently  follows,  as 
before  observed,  that  if  all  the  accounts  be  added,  at  any  given 
period  J  the  amount  of  the  Debtor  sides  of  the  Ledger  will  be  equal 
to  that  of  the  Creditor  sides. 

In  tracing  the  principle  of  equality,  we  have  considered  property 
in  a  state  of  rest ;  but  we  shall  find  it  equally  essential  to  property 
in  motion.     This  is  evident  from  two  considerations  : — 

First,  At  any  two  periods  of  time,  as  the  beginning  and  the 
end  of  a  year,  the  equilibrium  of  debtors  and  creditors  exists  hi 
the  concern  considered  in  a  state  of  rest.  From  the  axioms,  that 
if  equals  be  added  to  equals,  the  sums  will  be  equal ;  or  if  equals 
be  taken  from  equals,  the  remainders  will  be  equal ;  it  is  evident 
that  the  same  equilibrium  must  exist  in  all  the  intermediate  occur- 
rences. 

Secondly,  The  same  thing  is  apparent  from  the  very  nature  of 
all  mercantile  transactions.  Property  in  trade  is  in  a  state  of 
continual  change.  In  purchases,  cash  is  converted  into  goods ; 
and  in  sales,  goods  are  reconverted  into  cash.  Or  if  credit  is 
allowed,  the  changes  are  still  more  numerous.  Purchases  create 
personal  creditors ;  sales  convert  goods  into  personal  debtors ; 
receipts  convert  personal  debtors  into  cash,  whilst  payments 
destroy  cash  and  personal  creditors.  The  introduction  of  bills 
would  multiply  the  changes  by  an  intermediate  stage  between 
personal  debts  and  cash.  But  all  these  metamorphoses  and 
destruction  of  the  parts,  resolve  themselves  into  the  single  case, 
that  in  every  transaction  two  accounts  are  affected,  the  one  re- 
ceiving what  the  other  communicates. 


PRINCIPLE    OF    EQUILIBRIUM.  27 

The  imparting  account  is  always  creditor,  and  the  recipient 
account  always  debtor ;  so  that  debtor  and  creditor  must  perfectly 
equilibrate. 

We  proceed  to  show  that  this  harmony  of  debtors  and  creditors 
is  not  disturbed  by  profits  and  losses,  or,  in  other  words,  by  the 
augmentations  and  diminutions  of  the  capital.  Each  alteration  in 
the  whole  can  be  produced  only  by  a  correspondent  alteration  in 
one  of  the  parts ;  and  hence  two  accounts  are  always  affected  by 
the  change.  Thus,  when  a  legacy  is  received  in  money,  Cash  is 
made  debtor  and  Stock  creditor;  when  the  sale  of  goods  exceeds 
the  cost,  Merchandise  is  debtor  for  the  profit,  and  Stock  is  creditor; 
when  the  sale  falls  short  of  the  cost.  Merchandise  is  creditor  for 
the  loss,  and  Stock  is  debtor.  In  all  these  cases  there  is  a  transfer 
between  the  whole  and  the  parts,  the  one  receiving  what  the  other 
transmits ;  but  as  it  would  be  inconvenient  to  record  in  the 
Stock  Account  every  individual  alteration  of  capital,  the  transfer 
is  made  periodically ;  and  when  the  profits  and  losses  proceed 
from  various  sources,  accounts  are  opened  to  collect  the  par- 
ticulars and  transmit  the  general  result  in  one  entry  to  the  Stock 
Account. 

Till  the  time  of  this  transfer,  the  profits  and  losses  remain  latent 
in  the  particular  accounts  without  at  all  disturbing  the  equality  of 
debtors  and  creditors.  Thus,  goods  bought  of  A  for  $900,  and 
sold  to  B  for  $1,000,  leave  a  profit  of  $100;  which  remains 
latent  in  the  Merchandise  Account  till  the  periodical  transfer. 
Debtors  and  creditors  are  in  the  mean  time  perfectly  equilibrated ; 
for,  in  the  purchase,  merchandise  is  debtor  $900,  and  A  is  creditor 
$900;  whilst  in  the  sale,  merchandise  is  creditor  $1,000,  and  B 
is  debtor  $1,000. 

The  equilibrium  of  debtors  and  creditors  having  been  demon- 
strated, as  well  from  the  nature  of  these  relations  as  from  the 
axiom  that  the  whole  is  equal  to  the  sum  of  its  parts  ;  and  having 
been  shown  to  exist  essentially  in  property,  in  every  state,  whether 
of  motion  or  of  rest ;  we  may  justly  lay  it  down  as  the  funda- 
mental principle  of  Book-keeping — a  principle  not  of  art  or 
invention,  hut  of  science  and  discovery  ;  not  of  mere  expediency, 
but  of  absolute  necessity,  and  inseparable  from  the  nature  of 
accounts. 


28  CLASSIFICATION    OF    ACCOUNTS. 

Without  entering  into  subdivisions,  it  will  be  sufficient  to 
enumerate  the  objects  of  Book-keeping  under  four  general 
heads,  namely  : — 

1.  Stock  Account. 

2.  Money  Accounts. 

3.  Merchandise  Accounts. 

4.  Personal  Accounts.* 

The  record  of  each  class  of  accounts  is  equally  essential  to  the 
correctness  of  the  science,  but  not  equally  urgent  as  regards  the 
interest  and  convenience  of  the  merchant. 

Of  all  accounts,  the  Personal  are  those  vi^hich  most  imperiously 
claim  attention  :  the  evils  occasioned  by  the  neglect  of  other 
accounts  are  remote  and  contingent ;  but  immediate  and  inevitable 
injury  must  result  from  inattention  to  the  Personal  Accounts. 

In  all  extensive  concerns,  but  more  especially  in  those  that 
invest  the  whole  capital  in  trade,  it  is  highly  necessary  to  attend 
to  the  finances,  and  to  provide  due  resources  against  pending 
engagements  :  hence  Money  Accounts  are  second  in  the  order  of 
urgency. 

The  Merchandise  Accounts  are  little  regarded,  except  by 
wholesale  dealers,  and  even  by  these  are  frequently  neglected. 
Retailers  and  manufacturers  almost  universally  omit  this  class  of 
accounts,  from  the  erroneous  opinion  that  the  nature  of  their 
business  renders  the  record  of  them  impracticable. 

But  whenever  one  of  the  parts  of  property  is  omhted,  the 
system  of  Book-keeping  must  of  necessity  be  partial  and  incom- 
plete— there  can  be  no  dependence  or  harmony  between  the 
whole  and  the  parts  ;  the  stock  cannot  be  ascertained  from  the 
accounts  alone,  and  when  it  is  obtained  by  valuations  and  inven- 
tories, it  will  stand  unconnected  and  unproved  in  the  books. 

In  Book-keeping  by  Double  Entry,  the   Stock,  or  Capital  in^ 

*  The  division  of  Accounts  into  Personal,  Real,  and  Fictitious,  is  one  of  the  most 
ludicrous  that  ever  enlivened  the  gravity  of  the  scientific  page.  Are  Personal 
Accounts  unreal  ?  Or,  rather,  are  they  something  neither  real  nor  fictitious  ?  Is 
the  Stock  Account  a  mere  fiction  ?  Are  the  accounts  of  Profit  and  Loss  of  the 
same  romantic  nature  ?  In  case  of  loss,  it  would  be  some  consolation  to  consider 
them  in  this  aerial  and  poetical  light ;  but  when  a  balance  of  profit  occurs,  the 
pleasure  of  transfer  would  not  be  much  heightened  by  this  view  of  the  subject. 
The  merchant  may  reasonably  expect  to  find  something  substantial  in  his  Stock 
Account;  but  the  professors  of  Book-keeping,  faithful  to  the  Berkleian  theory, 
gravely  assure  him  that  it  is  all  fictitious  and  imaginary ! 


SINGLE    AND    DOUBLE    ENTRY.  29 

trade,  is  known  by  its  particular  account  in  the  Ledger,  without 
enumerating  and  adding  together  all  the  component  parts.  When, 
however,  this  general  extract  of  the  parts  is  made,  its  sum  will 
correspond  with  the  Stock  Account;  if  the  books  are  correct; 
and,  thus,  the  parts  and  the  whole  mutually  check  and  verify 
each  other. 

The  plan  or  form  of  arranging  accounts  may  be  varied  ac- 
cording to  the  peculiar  nature  of  the  business  ;  but  there  are, 
properly  speaking,  only  two  methods  of  Book-keeping  which 
differ  materially  from  each  other ;  namely,  Single,  and  Double 
Entry.  Single  Entry  is  the  most  simple  and  concise  method  ; 
but  it  is  imperfect  in  some  essential  particulars,  as  it  records 
Personal  Accounts  only,  and  is,  therefore,  incapable  of  proof. 

In  Single  Entry,  an  enumeration  of  the  effects  and  debts  is 
made,  in  order  to  discover  the  net  Capital  or  Stock  :  in  Double 
Entry,  the  net  Capital  is  ascertained  by  two  distinct  processes  ; — 
first,  by  the  Stock  Account  in  the  Ledger  ;  second,  by  col- 
lecting the  component  parts  ;  the  agreement  of  the  two  results 
proving  the  accuracy  of  the  books.  In  Single  Entry,  the  gain  or 
loss  cannot  be  known  till  the  debts  and  effects  are  collected,  and 
it  is  then  obtained  by  a  comparison  with  the  original  Stock.  In 
Double  Entry,  the  gain  or  loss  is  declared  by  the  Profit  and  Loss 
Account,  independently  of  the  general  extract  or  balance. 

Book-keeping,  by  Double  Entry,  has  more  advantages  to  a 
merchant  than  to  a  tradesman,  because  his  transactions  are  more 
extensive,  varied  and  complicated.  It  forms  the  connecting  link 
of  his  accounts,  and  shows  in  what  manner  his  funds  have  been 
successively  invested.  As  every  debtor  has  a  creditor,  no  part  of 
his  property  is  unaccounted  for  ;  and  when  in  doubt  as  to  any 
specific  portion,  he  will  find  a  solution  of  the  difficulty  in  his  own 
journal.  Those  who  know  how  soon  money  becomes  absorbed, 
or  at  least  appropriated  in  business,  and  in  how  few  years  a  large 
sum  may  be  vested  in  machinery,  shipping,  or  other  fixed  capital, 
are  aware  that  merchants  would  often  consider  themselves  de- 
ceived, if  they  had  not,  in  Double  Entry,  an  unfailing  clue  to  the 
appropriation  of  their  capital. 


CHAPTER   III 


ITALIAN  METHOD MODERN  PRACTICE SUBSIDIARY  BOOKS. 


In  the  earlier  stages  of  commerce,  the  transactions  of  merchants, 
though  varied  in  their  nature,  were  on  a  small  scale  as  regarded 
any  particular  department.  The  same  individual  did  business  in 
a  number  of  articles,  but  in  none  to  an  extent  to  require  separate 
books  of  account.  Hence  the  practice  of  recording  all  the 
purchases,  sales,  receipts  and  payments,  in  a  diary,  which,  from 
the  rough  manner  in  which  it  was  kept,  was  called  a  Waste 
Book. 

The  Italian  method  consists  of  three  books  : — 

1.  The  Waste  Book,  which  opens  with  an  Inventory  of  the 
property  in  the  concern,  and  contains  a  simple  narration  of  all  the 
transactions. 

2.  The  Journal,  which  is  an  abstract  of  the  Waste  Book,  with 
a  formal  statement  of  debtor  and  creditor  resulting  from  every 
transaction. 

3.  The  Ledger,  or  register  of  the  whole  capital,  as  well  as  its 
component  parts. 

In  process  of  time,  as  mercantile  affairs  took  a  wider  range, 
separate  books  were  required  for  particular  departments  of  business, 
such  as  a  Bill  Book  for  all  notes  or  bills,  and  a  Cash  Book  for 
all  ready  money  transactions.  This  had  long  been  the  case  in  the 
large  mercantile  towns  of  Italy  and  Holland  ;  and  about  a  century 
ago  it  became  a  general  practice  in  London.  But  in  English 
as  in  foreign  counting-houses,  the  Bill  Book,  and  even  the  Cash 
Book,  were  long  considered  as  little  more  than  memoranda  of 


MODERN    PRACTICE    OF    BOOK-KEEPING.  31 

details  ;  not  as  books  of  authority,  or  as  fit  documents  for 
Journal  entries :  for  that  purpose  the  diary  or  Waste  Book  only 
was  used.  In  time,  however,  the  mode  of  keeping  these  Subsidiary 
Books  improved,  and  merchants  became  aware  that,  when  Cash 
or  Bill  transactions  were  properly  entered  in  them,  the  Journal 
might  be  composed  from  the  Subsidiary  Books  as  well  as  from 
the  Waste  Book. 

When  from  the  gradual  improvement  in  the  management  of 
accounts,  these  books  were  kept  in  a  manner  to  supply  all  that 
was  necessary  for  the  Journal  entries,  the  use  of  the  Waste 
Book  was  dispensed  with,  and  it  was  found  that  the  books  kept 
for  separate  departments  of  the  business  were  sufficient  authorities 
for  the  composition  of  the  Journal. 

In  the  modern  practice  of  Book-keeping,  therefore,  where  the 
transactions  are  varied  and  extensive,  instead  of  one  Waste  Book, 
several  books  are  used,  each  appropriated  to  a  distinct  class  of 
afiairs,  as  Cash,  Bills,  Sales,  Purchases,  &z;c.  All  these  books 
are  journalized  once  a  month,  and  the  transactions  relating  to 
each  account  are  classed  together,  and  posted  in  one  sum  to  the 
Ledger.  The  money  receipts  and  payments,  instead  of  being 
mixed  in  the  Waste  Book,  with  the  Invoices,  Sales,  and  other 
entries  quite  different  in  their  nature,  are  all  registered  in  the 
Cash  Book,  or  book  for  that  special  purpose.  The  same  prin- 
ciple of  division  holds  in  regard  to  Bills,  Invoices,  Sales,  and, 
in  short,  to  every  department  of  business. 

The  Subsidiary  Books  generally  used  in  business,  are : — 

I.  The  Cash  Book,  containing  all  cash  transactions.  On  the 
left  hand,  or  Dr.  side,  are  entered  all  sums  received,  and  on  the 
right  hand,  or  Cr,  side,  all  sums  paid.  This  book  enables  the 
cash-keeper  to  check  the  money  on  hand  as  often  as  he  finds  it 
necessary,  and,  being  journalized  monthly,  reduces  the  Cash 
Account  in  the  Ledger  to  twelve  lines,  that  is  one  for  each  month 
in  the  year. 

II.  The  Bill  Book,  in  one  part  of  which  are  entered  all  bills 
which  the  merchant  receives,  and,  in  the  other,  all  bills  which  he 
grants  or  accepts.  It  is  ruled  with  columns  for  the  different 
clauses  of  the  bills ;   as  the  date ;   when  received  or  accepted  5 


32  SUBSIDIARY  AND  DAY  BOOKS. 

on  whom  drawn  or  to  whom  granted  ;  when  payable ;  the  sum 
of  the  bill,  and  the  event, — that  is,  whether  paid,  discounted,  or 
protested. 

III.  The  Invoice  Book,  which  contains  the  particulars  of 
goods  purchased. 

It  is  usually  made  of  cartridge-paper,  on  which  the  original 
Bills  of  Parcels  and  Invoices  are  pasted,  when  checked.  This 
book  should  have  an  alphabetical  Index,  so  that  any  single  Invoice 
may  be  referred  to  with  the  same  ease  as  we  turn  to  an  account 
in  the  Ledger. 

IV.  The  Book  of  Shipments,  or  Invoice  Book  outwards,  in 
which  are  entered  an  account  of  goods  sent  off,  either  in  conse- 
quence of  orders,  or  consigned  for  sale. 

V.  The  Account  Sales  Book,  in  which  are  entered  the  sales 
of  goods  consigned,  and  the  charges  incurred  upon  them,  such 
as  Duties,  Store-rent,  Commissions,  Sic,  wuh  the  net  proceeds 
ascertained. 

The  Day  Book  is  used  to  record  every  transaction  which  does 
not  belong  to,  or  which  cannot  with  propriety  be  entered  in  any 
of  the  Subsidiary  Books.  Sometimes,  however,  the  Day  Book 
contains  the  amount  of  the  purchases  and  shipments,  with  refer- 
ence to  the  Invoice  Book  for  particulars. 

The  Books  above  described,  are  the  authorities  from  which 
it  is  now  customary  in  every  well-regulated  counting-house  to 
compose  the  Journal.  Their  number  indicates  a  repartition  or 
subdivision  of  counting-house  work,  to  a  considerable  extent, 
and  nowhere  is  such  repartition  productive  of  greater  advantage. 
How  much  better  is  it  to  enter  all  Bills  Receivable  in  one  book ; 
all  Bills  Payable  in  another  ;  and  all  Cash  transactions  in  a  third, 
than  in  any  way  to  blend  these  very  distinct  entries.  The  effect 
of  this  subdivision  is  to  simplify  the  Journal  entries  in  a  manner 
highly  conducive  to  accuracy  and  despatch  ;  and  to  present  such 
means  of  checking  or  examining  them,  that  the  transactions  may 
be  stated  without  liability  to  error. 


THE  JOURNAL.  33 

There  are,  also,  in  every  counting-house,  a  hw  books  which 
do  not  form  part  of  the  vouchers  or  materials  for  the  Journal, 
namely  : — 

1.  The  Account  Current  Book,  containing  duplicates  of  ac- 
counts furnished  by  the  house  to  their  different  correspondents 
and  connections. 

2.  The  Letter  Boole,  containing  copies  of  all  important  letters 
written  to  correspondents. 

3.  The  Petty  Cash  Booh,  or  account  of  petty  disbursements, 
the  sum  of  which  is  entered  once  a  month  in  the  Cash  Book. 

4.  The  Order  Book,  containing  copies  of  all  orders  received. 

5.  The  Cash  Sales  Book,  containing  the  daily  receipts  for 
merchandise  sold  for  ready  money,  the  sum  of  which  is  entered 
once  a  week  in  the  Cash  Book. 

It  should  be  observed  that  the  Subsidiary  Books  in  every  mer- 
cantile house  are  varied  and  multiplied  according  to  the  nature  or 
extent  of  the  business.  It  must  not  be  supposed,  that  all  the 
books  here  enumerated  are  requisite  in  every  concern.  Where 
business  is  on  a  small  scale,  and  the  transactions  are  confined 
chiefly  to  purchases  and  sales,  only  four  books  are  necessary,  viz. 
the  Cash  Book  and  Day  Book,  from  which  the  Journal  is 
composed,  and  the  Ledger. 

The  Subsidiary  Books,  containing  as  they  do  the  primary 
entries,  should  be  kept  with  the  greatest  correctness,  and  every 
entry  in  them  ought  to  be  carefully  examined  before  journalizing. 
The  Journal  must  also  be  compared  with  each  book  and  checked 
before  posting  the  entries  into  the  Ledger. 

The  Journal  being  a  complete  record  of  the  business,  is 
varied  and  comprehensive  in  its  nature,  and  may  be  termed  an 
index  to  every  book  of  consequence  in  the  counting-house. 

In  the  Cash  Book,  every  payment  or  receipt  is  entered  the 
day  it  takes  place,  and  in  the  Bill  Book,  every  bill  is  registered 
the  day  it  is  accepted  ;  but  the  Journal  Entries,  being  com- 
pleted only  at  the  end  of  the  month,  may  be  combined  so  as  to 
exhibit  a  number  of  transactions  in  collective  sums.  Thus  the 
entry,  '  Sundries  Dr.  to  Bills  Payable,^  exhibits,  in  succession, 
all  the  Bills  accepted  during  the  month  ;  they  are  then  added,  and 

kthe  total  alone  is  carried  to  the  Ledger*.    In  like  manner,  in  the 
L       • 


34  THE  JOURNAL. 

entry,  'Bills  Receivable  Dr.  to  Sundries,^  the  aggregate  alone 
is  carried  to  the  Ledger ;  and  the  same  in  a  variety  of  cases,  the 
effect  of  which  is  greatly  to  lessen  the  difficulty  of  balancing  the 
books  at  the  end  of  the  year.  In  some  counting-houses,  the 
book-keeper  posts  directly  from  the  Cash  Book  to  the  Ledger. 
This  is  effected  by  a  recapitulation  at  the  close  of  the  month, 
thus  classing  together  in  one  line,  all  transactions  of  the  same 
nature  :  such  as  '  Bills  Receivable,'  '  Bills  Payable,'  *  Sales  of 
Merchandise,'  '  Expenses,'  '  Interest,'  Sic.  he. ;  making  these 
separate  amounts  agree  with  the  monthly  aggregate  receipts  and 
disbursements.  This  method,  however,  we  do  not  approve  of; 
we  grant  that  it  saves  the  labor  of  copying  a  few  pages  per  month 
in  the  Journal,  but  then  we  think  this  extra  trouble  amply  com- 
pensated by  the  advantage  of  having  the  Journal  a  perfect  abstract 
of  all  the  Subsidiary  Books. 

Before  laying  down  rules  for  journalizing,  we  shall  consider 
the  nature  of  the  accounts  in  the  Ledger,  because,  although  the 
Journal  comes  first  in  the  order  of  writing,  yet  the  process  of 
journalizing  cannot  be  well  understood  until  the  nature  and  ar- 
rangement of  the  accounts  in  the  Ledger  are  explained.  The 
learner  must  bear  in  mind  that  the  main  design  of  the  Journal,  is 
to  facilitate  the  posting  and  balancing  of  the  Ledger. 


CHAPTER   IV. 


EXPLANATION     OF     THE     LEDGER 


The  Ledger  contains  a  general  classification  of  the  entries 
in  the  Journal,  by  opening  separate  accounts  for  every  person 
indebted  to  you,  or  to  whom  you  are  indebted  ;  accounts  for  all 
property  coming  into  or  going  out  of  your  possession ;  and  ac- 
counts to  contain  the  loss  or  gain  resulting  from  any  other 
transaction  than  the  purchase  or  sale  of  property ;  for  the  purpose 
of  arranging  the  different  branches  of  the  business  under  distinct 
heads.  The  difference  between  the  Dr.  and  Cr.  sides  of  any 
Personal  Account  is  called  the  Balance, 

1.  Accounts  of  Persons. 
The  Dr.  side  of  any  person^s  account,  contains  the  sums  by 
which  that  person  has  become  indebted  to  you ;  and  the  Cr. 
side  the  sums  by  which  you  have  become  indebted  to  him.  The 
Balance  shows  how  much  is  owing  either  to  or  by  you,  as  the 
case  may  be. 

2.  Accounts  of  Money. 

Cash — contains  on  the  Dr.  side  the  sums  you  receive,  and 
on  the  Cr.  side  the  sums  you  pay.  The  Balance  shows  the 
Cash  in  hand. 

Bills  Receivable — contains  on  the  Dr.  side  the  Bills  you 
receive  and  have  not  to  provide  for  when  due,  and  on  the  Cr. 
side  those  you  either  receive  payment  for  discount,  or  otherwise 
dispose  of.     The  Balance  is  the  sum  owing  to  you  in  Bills. 


36  EXPLANATION  OF  THE  LEDGER. 

Bills  Payable — contains  on  the  Dr.  side  the  Bills  you  have 
paid,  and  on  the  Cr.  side  the  Bills  or  Drafts  which  you  accept 
and  have  to  provide  for,  when  due.  The  Balance  is  the  amount 
you  owe  in  accepted  Bills. 

3.  Accounts  of  Merchandise  and  other  Property. 

An  account  of  Merchandise  contains  on  the  Dr.  side  the 
purchases  and  all  charges  connected  with  the  cost,  and  on  the 
Cr.  side  the  sales  or  other  returns.  The  quantity  on  hand  is 
called  the  Balance,  and  being  placed  on  the  credit  side,  the 
difference  sliows  the  gain  or  loss.  In  like  nianner,  the  accounts 
of  Ships,  Houses,  or  Lands,  contain  on  the  Dr.  side  the  cost 
with  all  charges,  such  as  repairs,  taxes,  he;  and  on  the  Cr. 
side  the  sales,  or  other  returns  arising  from  them.  Tl:\e  estimated 
value  of  the  Property  unsold,  is  the  Balance  of  the  account, 
which  being  placed  on  the  Cr.  side,  the  difference  shows  the 
gain  or  loss. 

4.  Stock,  and  Profit  and  Loss. 

Stock — is  a  term  used  to  represent  the  owner  of  the  books. 
It  contains  on  the  Cr.  side  the  amount  of  property  brought  into 
business,  and  afterwards  the  gain  the  owner  has  made ;  and  on 
the  Dr.  side,  the  amount  of  his  private  expenses,  and  the  loss 
he  has  sustained,  when  that  exceeds  the  gain.  The  Balance, 
therefore,  shows  his  Net  Capital. 

Profit  and  Loss — contains  on  the  Dr.  side  every  item  of 
loss,  and  on  the  Cr.  side  every  hem  of  gain.  The  difference 
shows  the  net  gain  or  loss  on  the  business,  and  is  transferred,  at 
every  general  balance,  to  the  Stock  Account. 

House  Expenses,  or.  Private  Account — contains  on  the 
Dr.  side  the  value  of  any  thing  taken  for  private  use.  This 
amount,  as  it  is  not  properly  a  loss  attending  the  business 
transactions,  is  transferred  at  every  general  balance,  to  the  debit 
of  Stock. 

Charges — contains  on  the  Dr.  side  all  sums  paid  for  storage, 
counting-house  rent,  clerk's  salaries,  expenses  on  exportations, 
and  postage,  and  on  the  Cr.  side  the  sums  which  you  debit  your 
employers,  for  storage,  duties,  postages,  he. 


EXPLANATION  OF  THE  LEDGER.  37 

Interest — contains  on  the  Dr.  side  the  sums  you  pay  for 
discount  on  bills,  accounts,  or  interest  incurred ;  and  on  the  Cr, 
side,  such  discounts  and  interest  as  are  allowed  to  you. 

Commission — contains  on  the  Cr.  side  the  sums  you  receive 
or  charge  for  transacting  business  for  others.  There  are  seldom 
any  entries  on  the  Dr.  side ;  but  sometimes  it  contains  such  sums 
as  you  owe  your  Agents  for  transacting  business  for  you. 

The  difference  of  the  three  last  accounts  is  transferred  to  the 
proper  side  of  Profit  and  Loss  Account  at  every  general  balance. 

Insurance — This  account  is  made  Dr.  for  the  sums  insured 
with  others,  and  Cr.  when  these  are  charged  to  the  respective 
accounts  in  which  they  are  due. 

Profit  and  Loss  is  simply  a  branch  of  the  Stock  Account  : 
its  object  being  to  prevent  numerous  petty  entries  in  the  latter; 
to  collect  together  the  individual  augmentations  and  diminutions 
of  the  Capital ;  and  to  transfer  the  general  result  in  one  entry  to 
Stock,  and  Charges,  Interest,  Commission,  ^c,  are  merely 
ramifications  of  Profit  and  Loss,  which  collect  the  aggregates 
of  their  respective  departments,  and  transfer  the  results,  periodi- 
cally to  Profit  and  Loss.  The  Private  Account  is  another  main 
branch  of  Stock  :  its  use  being  to  record  all  sums  withdrawn  from 
the  business  for  private  purposes. 


CHAPTER    V. 


RULES    FOR    JOURNALIZING REMARKS    ON    THE    JOURNAL. 


The  Journal  is  composed  from  the  Day  Book  and  the  Sub- 
sidiary Books  ;  and  it  exhibits  a  fair  record  of  the  transactions  in 
monthly  totals,  with  the  Drs.  and  Crs.  pointed  out,  in  order  that 
the  sums  may  be  easily  transferred  to  the  proper  sides  of  the 
respective  accounts  in  the  Ledger. 

When  any  transaction  is  to  be  entered  in  the  Journal,  you  must 
consider  to  what  account  in  the  Ledger  it  is  to  be  placed,  both  on 
the  Dr,  and  Cr.  sides.  The  whole  art  of  Journalizing  consists 
in  a  proper  choice  of  Drs.  and  Crs.,  which  is  the  most  difficult 
part  of  Book-keeping. 

The  rules  for  distinguishing  Dr.  and  Cr.  are  inferred  from  the 
nature  of  the  accounts  in  the  Ledger  ;  and  things,  as  well  as 
persons,  are  made  Drs.  and  Crs.  These  terms  are  used  to 
denote  the  increase  or  decrease  of  an  account ;  and  the  appli- 
cation of  them  is  regulated  by  the  following — 

GENERAL  RULES. 

The  thing  received  is  Dr.  to  the  thing  delivered;  in  other 
words, — 

The  thing  received,  or  person  accountable  to  you,  is Dr. 

The  thing  delivered,  or  person  to  whom  you  are  accountable,  is    .  Cr. 

i.   The  Accounts  of  Persons 
are  debited  when   they   become    indebted  to  you,   and  credited 
when  you  become  indebted  to  them. 


RULES    FOR    JOURNALIZING.  39 

2.   The  Accounts  of  Money 
are  debited  for  all  sums  received,  and  credited  for  all  sums  paid  or 
delivered. 

3.   TAe  Accounts  of  Property 
are    debited   when    property    comes    into   your    possession,    and 
credited  when  property  goes  out  of  your  possession. 

4.   The  Profit  and  Loss  Account, 

(Or  its  Subsidiary  Accounts,) 

are    debited  for  every  Z055  or  charge  against  the  business,  and 
credited  for  every  gain  arising  from  the  business. 

To  find  the  Drs.  and  Crs,,  observe  in  every  transaction  whether 
a  person  has  become  indebted  to  you,  or  you  to  him — whether 
property  has  been  received  or  delivered — and  whether  you  have 
gained  or  lost  upon  any  account.  The  foregoing  rules  being 
applied  to  the  result  of  these  observations,  the  debtors  and 
creditors  may  easily  be   ascertained. 

JOURNALIZING  MONTHLY. 

As  before  observed  in  the  modern  practice  of  Book-keeping, 
the  first  daily  entries  of  all  receipts  and  payments  of  cash,  are 
formed  in  the  Cash  Book  ;  the  receipts  of  notes  or  bills  are 
entered  in  the  Bills  Receivable  Book ;  the  bills  granted  or 
accepted  in  Bills  Payable  Book ;  the  purchases  of  goods 
in  the  Invoice  Book,  &ic.  When  accounts  are  kept  in  this 
manner,  the  Subsidiary  Books  are  Journalized  monthly ;  and  the 
Journal  contains  a  monthly  abstract  of  all  the  transactions  classified 
and  arranged  under  distinct  heads.     In  the  Ledger — 

Cash  .    ...    is  made  Dr for  every  sum  received,  and 

Cash  .    ...    is  made  Cr.    .    .    .     .    for  every  sum  paid. 

Therefore,  to  Journalize  the  Cash  Book,  say — 

Cash  Dr,  to  Sundries,  viz. — 
To  the  respective  accounts  on  the  Dr.  side  of  the  Cash  Book, 
and — 

Sundries  Dr.  to  Cash,  viz. — 
The  several  accounts  on  the   Cr.  side ;  specifying  dates,  and 
other  particulars,  and  classing  similar  entries  together. 


40  MONTHLY    JOURNALIZING. 

When  Cash  has  been  received  upon  only  one  account,  Cash  is 
made  Dr,  to  that  account ;  and  when  Cash  has  been  paid  upon 
only  one  account,  that  account  is  made  Dr.  to  Cash.  When 
Cash  has  been  received  or  paid  more  than  once  upon  the  same 
account  during  the  month,  the  different  receipts  or  payments  are 
to  be  collected  in  the  inner  column,  and  the  total  sum  only  is  to 
be  carried  to  account. 

As  soon  as  each  sum  is  entered  in  the  Journal,  mark  it  off  on 
the  dollar  column  in  the  Cash  Book,  thus  \/,  which  will  readily 
direct  the  eye  to  those  entries  which  still  remain,  and  prevent 
omissions. 

Bills  Receivable   .     .     is  made  Br.   .     .    for  all  Bills  received,  and 
Bills  Payable     .     .     .    is  made  Cr.   .     .     for  all  Bills  accepted. 

Therefore,  to  Journalize  the  Bill  Book,  say — 

Bills  Receivable  Dr.  to  Sundries,  viz. — 

To  the  several  Persons  on  whose  account  the  Bills  were 
received,  and — 

Sundries  Dr.  to  Bills  Payable,  viz. — 

The  several  Persons  on  whose  account  you  accepted  the  Bills  ; 
setting  forth  particulars,  and  observing  to  collect  in  the  inner 
money  column,  the  amount  of  all  the  Bills  received  from,  or 
granted  to,  the  same  person  during  the  month. 

Merchandise   .  is  made  Dr.   .   for  the  cost  and  charges  of  goods,  and 
Merchandise   .   is  made  Cr.   .   for  all  sales  or  returns. 

Therefore,  to  Journalize  the  Day  Book  when  it  records  the 
sales  and  purchases  of  goods  on  your  own.  account,  say — 

Merchandise  Dr.  to  Sundries. 
For  the  Purchases  during  the   month,  viz. — 

To  each  Seller,  for  the  amount  bought  of  him,  and — 

Sundries  Dr.  to  Merchandise,  , 

For  the   Sales  during  the  month,  viz. — 
Each   Purchaser,  for  the  amount  sold   him.     If  several  pur- 
chases have  been  made   by  the  same  person  during  the  month, 
collect  the  amounts  in  the  inner  money  column,  and  extend  the 


REMARKS    ON    JOURNALIZING.  41 

total  sum  only,  so  as  to  avoid  increasing  the  entries  in  the  Ledger. 
When  goods  are  purchased  or  sold  for  Cash,  Bills,  he,  the 
entries  vary  accordingly. 


REMARKS. 

The  apparent  inconvenience  of  Journalizing  monthly,  occa- 
sioned by  the  delay  in  posting,  is  amply  compensated  in  the  sub- 
sequent stages  of  the  process.  By  such  an  arrangement  of  the 
Journal,  we  are  enabled  to  accomplish  with  ease  and  certainty, 
what  is  most  irksome  and  difficult  in  the  practice  of  Book- 
keeping ;  namely,  the  Posting  and  Balancing  of  the  accounts  in 
the  Ledger.  Independently  of  these  advantages,  the  Journal 
becomes  to  the  owner  a  valuable  abstract  of  his  mercantile 
transactions,  by  thus  bringing  them  into  a  concise  form  ;  which 
abstract,  in  the  unavoidable  absence  of  any  or  all  of  the  Subsidiary 
Books,  is  of  double  value. 

Classing  and  combining  each  month's  similar  transactions  in 
the  Journal,  affords  also  an  excellent  check  on  the  Cash  received 
and  paid ;  and  the  Bills  received,  accepted,  and  paid  ;  as  the 
amounts  are  thus  all  proved  before  being  posted.  The  accounts 
are  brought  into  a  concise  point  of  view ;  and  the  Ledger  is  so 
abridged,  that  no  more  than  twelve  lines  yearly,  will,  in  general, 
be  required  for  each  account,  though  the  transactions  be  ever 
so  numerous.  By  this  means  the  labor  of  balancing — otherwise  a 
most  troublesome  process — is  reduced  to  comparative  amusement. 

Posting  each  sum  singly  into  the  Ledger,  according  to  the 
Italian  method,  is  a  slovenly  and  tedious  practice,  and  unnecessarily 
swells  the  accounts  with  a  multiplicity  of  figures,  which  greatly 
increases  the  labor  and  difficulty  at  balancing  : — thus,  in  a  very 
ordinary  Commission  Business,  the  several  items  of  each  Invoice 
and  Sale,  would,  in  the  course  of  a  year,  extend  the  accounts 
of  Charges,  Interest,  Commission,  and  the  like,  to  some  folios, 
which  would  be  awkward  and  inconvenient,  and  the  chance  of 
errors  in  posting  is  always  in  proportion  to  the  number  of  entries. 
Except  in  very  limited  concerns,  where  a  Journal  may  be  dis- 
pensed with,  it  will  be  found  that  the  only  way  to  render  the 
balancing  of  the  Ledger  easy,  is  to  keep  it  in  such  a  concise 
6 


.1 


42  REMARKS    ON    JOURNALIZING. 

form,  as  that  it  may  be  considered  a  general  index  to  the  Journal, 
as  that  book  is  to  the  Subsidiary  Books.  "  The  book-keeper  who 
aims  at  making  the  Ledger  supply  the  place  of  an  Account 
Current  Book,"  says  Mr.  Booth,  after  thirty  years'  experience, 
"  will  make  himself  a  slave  to  no  purpose,  without  ever  having 
the  satisfaction  of  seeing  his  books  kept  up  ;  and  instead  of 
balancing  them  in  two  or  three  days,  may  spend  as  many  months 
before  it  is  effected,  which  I  have  frequently  known  to  be  the 


CHAPTER   VI. 

POSTING TRIAL  BALANCE GENERAL  BALANCE. 

The  process  of  transferring  the  accounts  from  the  Journal  to 
the  Ledger,  is  termed  Posting.  The  accounts  may  be  opened  in 
the  order  in  which  they  occur  in  the  Journal ;  but  it  is  preferable 
to  classify  them,  and  to  place  accounts  of  the  same  kind,  such  as 
Cash,  Bills  Receivable,  Bills  Payable,  Interest,  Commission,  &c., 
contiguous  to  each  other.  The  titles  of  the  accounts  must  be 
entered,  alphabetically,  in  an  Index,  as  well  as  the  page  of  the 
Ledger  where  each  account  is  opened. 

DIRECTIONS  FOR  POSTING. 

J .   When  the  Journal  entry  contains  only  one  Dr,  and  one  Cr., 
Debit  the  Dr.  account,  and  say.  To  the  Or.  account ;  then 
turn  to  the  Cr.  account,  and  say.  By  the  Dr.  account. 

Example. 
Cash,  Dr.  to  Stock. 
By  the  help  of  the  index,  turn  to  the  Cash  Account  in  the 
Ledger,  and  say  on  the  Dr.  side,  *  To  Stock,^  for  the  amount ; 
write  the  date  of  the  entry  in  the  margin,  and  insert  in  the 
reference  column,  the  page  of  the  Journal ;  then  turn  to  Stock 
Account,  and  on  the  Cr.  side,  say,  *  By  Cash,^  for  the  same 
amount,  prefixing  the  date,  &ic.  as  before. 

2.    When  the  Journal  entry  contains  one  Dr.  with  several  Crs. 

Example. 
Merchandise,  Dr.  to  Sundries.'^ 
In  this  case,  you  turn  to  the  Merchandise  Account  in  the 
Ledger,  and  on  the  Dr.  side,  say,  *  To  Sundries,^  for  the  total 

*  When  two  or  more  persons  or  things  are  included  in  one  entry,  they  are 
expressed  by  the  collective  term  Sundries. 


44 


JOURNAL    ENTRIES. 


amount,  and  credit  the   other    accounts,  '  By  Merchandise,^  for 
their  respective  sums. 

3.  When  the  Journal  entry  contains  several  Drs.  and  only 
one  Cr. 

Example. 
Sundries,  Dr.  to  Cash. 
Credit  Cash  Account,  *  By  Sundries,^  for  the  total  amount ; 
and  theo  debit  the  other  accounts  and  say,  '  To  Cash,^  for  their 
respective  sums  ;  prefix  dates,  &ic.  ;  be  particular  to  insert  in  the 
proper  column  of  the  Ledger  the  page  of  the  Journal  from  which 
the  entry  is  transferred,  and  also,  in  the  Journal,  the  folio  of  the 
Ledger  to  which  the  entry  is  transferred,  so  as  to  afford  a  ready 
reference  from  one  book  to  the  other. 

4.  When  the  Journal  entry  contains  several  Drs.  with  several  Crs. 
Debit  each  of  the  Dr.  accounts, '  To  Sundries,^  and  Credit  each 

of  the  Cr.  accounts,  /  By  Sundries,^  for  their  respective  sums. 

The  learner  will  observe,  that  when  either  a  Dr.  or  Cr.  entry 
has  several  dates  belonging  to  it,  the  last  one  only  is  used  in  the 
Ledger. 

The  following  is  an  exemplification  of  the  process  of  posting  : — 

[Journal  Entries.] 


January,  1836. 


H.  Clay,  Dr.  to  Merchandise, 
1st,  for  amount  purchased  this  day, 

Cash,  Dr.  to  Sundries, 
To  J.  Hill, 

1st,  on  account, 

To  R.  Jones, 

2d,  in  full, 

SuNDiiiEs,  Dr.  to  Cash, 
James  Brown, 

5th,  paid  him  on  account, 

Peter  Hill, 

8th,  paid  him  in  full,     .    .    . 

R.  Brookes, 

15th,  paid  his  Bill  Parcels, .    . 


325175 


750 
275 


1,025  87 


150 


464 


*  The  figures  in  this  column,  refer  to  the  pages  of  the  Ledger,  where  the  several  accounts  are  opened. 


LEDGER    ENTRIES, 

[Ledger  Entries.] 


45 


2 

Dr.                                        H.  Clay.                                          Cr. 

1836 
Jan.    1 

* 
To  Merchandise,    ...      1 

325  75 

1 

Dr,                                    Merchandise. 

3 

Cr. 

1836 
Jan.    i 

* 
By  H.Clay, 1 

325  75 

Dr.                                           Cash. 

4 

Cr. 

1836 
Jan.   2 

To  Sundries, 1 

1,025  87 

1836 
Jan.  15 

By  Sundries, 1 

464  13 

Dr.                                         J.  Hill. 

5 

Cr. 

1836 
Jan.    1 

By  Cash, 1 

750  00 

Dr.                                        R.  Jones. 

6 

Cr. 

1836 
Jan.    2 

By  Cash, 1 

275  87 

Dr.                                    James  Brown. 

7 

Cr. 

1836 
Jan.   5 

To  Cash, ] 

275  0 

, 

Dr.                                        Peter  Hill. 

8 
Cr. 

18.36 
Jan.    8 

To  Cash, 

I         150  3 

t 

Dr.                                      R.  Brookes. 

9 

Cr. 

1836 
Jan.  15 

To  Cash, 

1           387 

5 

The  figures  in  thia  column,  refer  to  the  Journal  page. 


The   Ledger  is  merely  an   index   to  the   Journal,  exactly  as 
the  Journal  is  an  index  to  the  Subsidiary  Books,  and  it  should 


46  TRIAL    BALANCE. 

be  kept  in  the  most  concise  form.  The  Insertions  in  it  ought 
never  to  exceed  a  line  each,  or  to  contain  more  than  the  title 
of  the  entry  in  the  Journal  to  which  they  refer.  On  opening 
a  page  in  the  Ledger,  a  person  unacquainted  with  Book-keeping 
is  apt  to  consider  this  brevity  unsatisfactory ;  and  it  was  formerly 
the  practice  to  add  in  each  line  a  few  explanatory  words.  This 
method  is  still  followed  in  some  counting-houses ;  but  such 
explanations  are  practicable  only  in  a  limited  business: — whenever 
the  transactions  are  numerous  and  varied,  all  particulars  should 
be  left  out  of  the  Ledger  for  two  reasons  :  they  increase  the 
labor  of  the  book-keeper,  and  they  never  can  be  so  full  or 
circumstantial  as  to  supersede  the  necessity  of  an  Account  Current 
Book. 

When  the  space  allotted  for  any  account  in  the  Ledger  is  filled 
up,  the  amount  must  be  transferred  to  another  folio ;  for  this 
purpose,   write  on  both  sides,  opposite   where  the  sums  will  be 

placed    when    the    account   is  added,    Transferred  to  foil. . 

Then,  after  entering  the  new  folio  in  the  index,  and  opening  the 
account  anew,  write  on  the  Dr.  side,   To  amount  brought  from 

folio ,  inserting  iXiQ  folio  where  the  account  was  first  opened. 

The  sums  of  an  account  transferred,  should  be  left  blank,  or 
inserted  with  a  black  lead  pencil,  till  the  books  are  compared ; 
as  an  error  in  any  of  the  entries  will  occasion  an  alteration  in  the 
amount.  When  either  side  of  an  account  is  full,  both  sides 
should  be  transferred,  and  a  diagonal  line  drawn  to  fill  up  the 
vacant  space  on  the  side  which  requires  it. 


TRIAL  BALANCE. 

Having  finished  posting  the  Ledger,  it  is  proper  to  make  a 
TRIAL  BALANCE  bcforc  you  close  the  accounts,  to  ascertain  if  the 
Dr.  and  Cr.  sides  correspond. 

For  this  purpose,  prepare  a  sheet  of  paper  ruled  with  a 
double  money  column,  and  headed  Trial  Balance^  with  a  Dr. 
and  Cr.  over  those  columns ;  write  the  title  of  every  account 
in  the  Ledger,  and  place  the  amount  of  the  Dr.  side  in  the  Dr. 
column,  and  of  the  Cr.  side  in  the  Cr.  column ;  add  together 
all  the  sums  in  these  columns,  and  if  the  Ledger  is  correct,  the 


GENERAL    BALANCE.  47 

two  amounts  will  agree ;  for  in  every  entry,  the  Dr.  or  Drs, 
being  equal  to  the  Or.  or  Crs.^  it  must  follow,  if  these  sums 
were  correctly  placed,  that  the  aggregate  amount  of  the  Dr. 
side  of  the  Ledger  will  be  equal  to  that  of  the  Cr.  side.  If 
otherwise,  some  mistake  has  been  committed.  The  apparent 
difference  may  not  exceed  a  few  dollars,  or  cents ;  still  the 
smallest  discrepancy  shows  the  existence  of  error,  and  to  an 
extent,  perhaps,  greatly  beyond  the  fraction  in  question.  It 
often  happens,  indeed,  that  as  the  examination  proceeds,  the 
difference  undergoes  a  change  from  a  smaller  to  a  larger  amount, 
without  increasing  the  difficulty  of  discovering  the  error,  which 
is  as  likely  to  have  occurred  in  the  case  of  a  large  as  a  small 
sum.  Differences,  when  in  round  sums,  such  as  $10,  $100, 
$1,000,  generally  lie  in  the  addition;  fractional  sums  frequently 
in  the  posting.  All  this,  however,  is  uncertain.  Hence  the 
necessity  of  examining  the  whole ;  and  young  book-keepers 
are  often  obliged  to  pass  week  after  week  in  the  tedious  labor 
of  revising,  adding,  and  subtracting,  in  order  to  bring  their 
accounts  to  a  balance. 

On  the  other  hand,  there  are  sometimes  examples  of  the 
balances  being  found  on  the  first  trial ;  but  such  cases  are  rare, 
and  occur  only  to  careful  and  experienced  book-keepers. 

The  only  effectual  means  of  lessening  the  labor  and  perplexity 
of  balancing,  is  to  limit  the  number  of  Ledger  entries ;  in  other 
words,  to  comprise  as  much  as  possible  in  those  aggregate 
sums  in  the  Journal  which  are  posted  in  the  Ledger,  and  to 
exercise  great  care  in  every  stage  of  the  process ;  as  well  in 
making  the  additions  in  the  Journal,  as  in  posting  and  casting 
up  the  Ledger  accounts ;  and  lastly,  in  adding  up  the  balance 
sheet. 


GENERAL  BALANCE. 

Balancing  the  Ledger,  is  closing  all  the  accounts  so  as  to 
exhibit  a  concise  statement  of  the  debts  owing  to  and  by  you,  the 
property  you  have  on  hand,  together  with  the  gain  you  have 
made  or  the  loss  sustained  since  you  commenced  business,  or 
since  a  former  balance. 

Having  seen  from  the  Trial  Balance  that  the  Ledger  has  been 


48  GENERAL    BALANCE. 

correctly  posted,  or  at  least,  that  the  amounts  of  both  sides  agree, 
proceed  in  the  following  manner  : — 

First,  transfer  the  Private  Account,  to  Stock,  by  debiting 
Stock,  To  Private  Account,  for  the  sum  you  have  withdrawn 
from  the  capital,  and  then  credit  Private  Account,  By  Stock,  for 
the  same  amount. 

Next,  prepare  two  sheets  of  paper,  ruled  with  money  columns, 
in  the  form  of  Dr.  and  Cr.  ;  write  Profit  and  Loss,  as  the  title 
of  one,  and  Balance,  as  that  of  the  other.  Pass  by  such  accounts 
as  are  already  closed  ;*  also  Stock,  and  Profit  and  Loss,  which 
are  always  the  last  accounts  balanced. 

The  balance  of  an  account  is  what  is  owing  to  or  by  you  at 
that  account,  and  which  is  divided  into  two  kinds — Effects  and 
Debts.  If  the  difference  is  neither  effects  nor  debts,  it  belongs  to 
the  account  of  Profit  and  Loss  ;  a  difference  in  favor  of  the  Br, 
side  being  a  loss  ;  and  in  favor  of  the  Cr.  side  being  a  gain. 

Take  the  balance  of  every  account  in  the  following  manner  : — 

J.  Accounts  of  Persons. 
In  Personal  Accounts,  if  the  Dr.  side  be  greater,  enter  the 
difference  or  balance,  which  is  a  debt  owing  to  you,  on  the  Dr, 
Vide  of  the  balance  sheet ;  but  if  the  Cr.  side  be  greater,  enter 
the  difference,  which  is  a  debt  owing  by  you,  on  the  Cr.  side  of 
said  sheet. 

2.  Accounts  of  Money. 

In  the  Cash  Account,  enter  the  difference,  which  is  the  money 
in  hand,  on  the  Dr.  side  of  the  balance  sheet. 

In  Bills  Receivable,  enter  the  difference,  which  is  the  sum 
owing  to  you  in  bills,  on  the  Dr.  side. 

In  Bills  Payable,  enter  the  difference,  which  is  the  sum  owing 
by  you  in  bills,  or  acceptances,  on  the  Cr.  side  of  the  balance 
sheet. 


*  When  an  account  is  added,  the  two  sides  either  will  be  equal,  without  further 
entry,  or  must  be  rendered  equal  by  transferring  the  difference  or  balance  to  the 
opposite  column.  In  the  former  case,  the  account  is  closed ;  in  the  latter,  it  is 
merely  equilibrated,  but  continues  open.  Much  confusion  has  arisen,  from  ap- 
plying the  term  "  closed,"  indiscriminately  to  both  cases ;  and  it  is,  therefore, 
particularly  impressed  on  the  student's  attention,  that  an  account  is  never  closed, 
till  there  remains  no  balance  to  carry  down  or  transfer. 


PROOF    OF    BOOK-KEEPING.  49 

3.  Accounts  of  Property. 

In  the  accounts  of  Merchandise^  or  other  property,  if  there  be 
nothing  on  hand,  enter  the  difference,  which  is  the  gain  or  loss,  on 
the  proper  side  of  the  Profit  and  Loss  sheet. 

If  the  whole  be  on  hand,  enter  the  present  value  on  the  Dr, 
side  of  the  Balance  sheet ;  and,  if  this  be  different  from  the  prime 
cost,  charges  included,  enter  the  difference  on  the  proper  side  of 
the  Profit  and  Loss  sheet.  If  part  be  sold,  place  the  value  of  the 
quantity  on  hand  under  the  sum  of  the  Cr.,  and  add  them.  The 
total  is  the  whole  return  that  will  be  obtained,  if  the  goods 
remaining  on  hand  be  sold  at  the  estimated  value  ;  and  this  com- 
pared with  the  sum  of  the  Dr,  side,  shows  the  gain  or  loss. 
Enter  the  value  of  the  quantity  on  hand  on  the  Dr.  side  of  the 
Balance  sheet ;  the  difference  is  gain  or  loss,  and  is  transferred 
accordingly. 

In  Adventures,  when  no  returns  have  been  made,  enter  the 
amount  on  the  Dr.  side  of  the  Balance  sheet.  If  returns  be 
made,  and  the  account  credited  for  the  proceeds  of  the  sales, 
enter  the  difference,  which  is  gain  or  loss,  on  the  proper  side  of 
the  Profit  and  Loss  sheet. 

In  such  accounts  as  charges,  commission,  interest,  ^c,  enter  the 
difference  on  the  proper  side  of  the  Profit  and  Loss  sheet. 


PROOF  OF  BOOK-KEEPING. 

When  you  have  collected  all  the  balances,  add  the  Profit  and 
Loss  sheet,  including  the  sums  which  stand  at  that  account  in  the 
Ledger.  The  difference  between  the  two  sides,  is  your  net  gain 
or  loss  ;  to  this,  add  the  difference  of  Stock  Account,  and  the 
sum  is  your  net  Capital,  which. will  correspond  to  the  difference 
of  the  Balance  sheet,  if  the  books  be  correctly  posted,  and  the 
balances  exactly  collected.  The  reason  of  this  will  appear  from 
what  follows  : — 

The  Balance  Account  contains  on  the  Dr.  side,  the  amount  of 
your  effects,  and  the  debts  due  to  you  ;  and  on  the  Cr.  side,  the 
debts  you  owe  ;  and,  therefore,  the  difference  of  the  two  sides 
shows  your  present  Capital. 

The  difference  of  Stock  and  Balance  being  found  to  agree, 
your  next  work  is  to  close  the  Accounts.  For  this  purpose, 
7 


50  CLOSIiSG    THE    ACCOUNTS. 

transfer  the  sum,  or  difference  of  each  account,  to  its  proper  place 
in  the  Ledger  ;  or  if  the  particulars  of  the  Profit  and  Loss  and 
Balance  sheets  are  to  be  inserted  in  the  Journal,  make  the  fol- 
lowing entries  : — 

1st.  Profit  and  Loss,  Dr.  to  Sundries,  viz : — 
To  the  several  accounts  on  the  Dr.  side  of  the  Profit  and  Loss 
sheet. 

2d.  Sundries,  Dr.  to  Profit  and  Loss,  viz  : — 
To  the  several  accounts  on  the  Cr.  side. 

3d.  Balance,  Dr.  to  Sundries, — 

For  the  cash,  goods,  and  other  property  on  hand,  and  debts 
owing  to  you. 

4th.   Sundries,  Dr.  to  Balance, — 

For  the  bills  or  acceptances  unpaid,  and  the  several  debts 
owing  by  you. 

These  items,  when  posted  into  the  Ledger,  will  close  all  the 
accounts  except  Stock,  Profit  and  Loss,  and  Balance.  To  close 
vi^hich,  transfer  the  difference  of  Profit  and  Loss  to  Stock,  and 
the  difference  of  Stock  to  the  Cr.  side  of  Balance. 

The  reason  of  the  difference  of  Stock  agreeing  with  the 
difference  of  Balance,  is  obvious  from  the  nature  of  the  articles 
collected.  The  Dr.  side  of  Balance  contains  the  amount  of  your 
effects  ;  the  Cr.  side,  the  sums  you  owe.  The  difference  shows 
your  Capital  at  the  time  of  balancing. 

The  Dr.  side  of  Stock  contained  the  amount  of  your  debts, 
and  the  Cr.  side  the  amount  of  your  effects.  The  difference 
showed  your  net  Capital  at  the  time  the  books  commenced  5  and 
when  the  gain  is  added,  or  loss  deducted  from  it,  the  result  must 
also  exhibit  your  Capital  at  present. 

Stock  and  Balance  Account,  therefore,  both  point  out  how 
much  you  are  worth — the  former  from  your  capital  at  com- 
mencement, (allowance  being  made  for  the  gain  or  loss,)  the 
latter  from  a  view  of  your  present  effects  or  debts.  Thus  the 
5tate  of  your  affairs  is  brought  together  in  a  narrow   compass 


REMARKS    ON    BALANCING.  31 

under  your  view,  and  the  articles  of  the  Balance  sheet  supply- 
materials  for  beginning  the  new  books,  and  are  made  the  first 
entries  in  the  Journal. 


REMARKS  ON  BALANCING. 

It  is  important,  before  balancing,  to  settle  as  many  Personal 
Accounts  as  possible ;  to  pay  off  all  petty  debts  and  ^mall 
charges;  and  to  fix  a  moderate  value  to  the  goods  and  other 
property  on  hand,  according  to  the  current  prices  at  the  time, 
and  at  which  the  owner  would  be  willing  to  purchase.  It  is 
more  correct  and  satisfactory  to  estimate  the  value  of  the  goods 
at  the  present  prices^  than  at  prime  cost. — The  design  of  fixing 
any  value,  is  to  point  out  the  gain  or  loss ;  for  the  gain  is,  in 
reality,  obtained  as  soon  as  the  prices  rise,  or  the  loss  suffered 
as  soon  as  they  fall. 

A  merchant,  before  estimating  his  profits,  ought  to  charge 
interest  on  each  investment.  His  actual  gain  cannot  be  ob- 
tained without  it;  and  the  practice  of  charging  it,  is  a  lesson  to 
him  to  hold  no  property  that  does  not  afford,  at  least,  interest 
on  his  advances. 

On  the  dissolution  of  a  copartnership,  or  the  like,  it  is 
obvious,  that  unless  interest  were  charged  upon  every  account 
respectively,  and  the  balances  of  these  properly  estimated,  the 
most  erroneous  statement  would,  in  most  cases,  be  produced 
either  for  or  against  the  partner  who  withdraws  from  the  concern. 

It  is  not  necessary  to  begin  new  books  after  balancing,  nor 
to  open  the  accounts  anew,  unless  the  present  Ledger  be  filled 
up.  The  balances  may  be  brought  down,  and  the  accounts 
continued  in  the  same  folios.  When  a  person,  in  the  course 
of  business,  comes  to  have  several  sets  of  Books,  it  is  usual 
to  distinguish  them  by  the  letters  of  the  alphabet;  as,  Ledger 
A,  Ledger  B,  &tc. 


CHAPTER  VII. 

merchants'  accounts BILLS  AND  NOTES. 

The  accounts  delivered  by  Merchants  to  their  customers  or 
employers  are,  Bills  of  Parcels,  Invoices,  Account  Sales,  and 
Accounts  Current. 

I.     Bills  of  Parcels.     [See  page  61.] 

A  Bill  of  Parcels,  is  a  particular  account  of  goods  given 
by  the  seller  to  the  buyer,  containing  the  description,  quantity, 
and  price  of  each  article;  and  the  amount,  with  the  place,  date, 
and  terms  of  credit.  In  making  out  such  accounts,  the  ex- 
pression. Bought  of,  is  always  used ;  but  for  work  done,  money 
lent,  or  the  like,  the  phrase.  To  (A.  B.)  Dr.,  is  substituted, 
as  well  as  in  general  accounts.  When  the  articles  are  sold  and 
delivered  at  one  time,  the  place  and  date  is  written  at  the  top  of 
the  account;  if  not,  the  different  dates  are  placed  in  the  margin. 

II.     Invoices.     [See  page  62.] 

An  Invoice,  is  an  account  of  goods  sent  off  generally  by 
sea,  either  in  consequence  of  an  order  from  the  person  to 
whom  they  are  sent,  and  at  his  risk,  or  consigned  to  him  for 
sale  at  the  risk  of  the  shipper,  with  the  marks  of  the  packages 
exhibited  on  the  margin,  and  the  different  charges  attending 
the  shipment  added  to  the  value  of  the  goods,  the  sum  of  which 
is  called  the  amount  of  the  Invoice. 

The  preamble  of  an  Invoice,  contains  the  names  of  the  con- 
signer, and  consignee ;  the  name  of  the  ship,  and  master ;  the 
place  from  which  she  sails,  and  destination ;  and  for  whose 
account  and  risk  the  goods  are  shipped.  Sometimes,  for  the 
satisfaction  of  the  employers,  the   seller's  Bills  of  Parcels  are 


BILLS    OR    PROMISSORY    NOTES.  53 

sent  along  with  the  goods,  and  only  the  amount  of  each  bill 
is  stated  in  the  Invoice,  with  reference  for  particulars  to  the 
Bill  of  Parcels. 

An  Invoice  ought  to  be  made  out  with  the  utmost  care,  for 
it  is  a  document  of  great  importance  in  several  respects  ;  first, 
between  the  exporting  merchant  and  his  correspondent ;  and 
next,  when  in  the  hands  of  the  latter  it  generally  forms  a 
voucher  for  calculating  import  duty,  if  any,  as  well  as  for  the 
sales  effected  to  retailers  or  other  dealers. 

The  sum  insured  usually  exceeds  the  amount  of  the  Invoice 
by  two  per  cent,  as  the  recovery  of  a  loss  from  insurers  involves 
a  charge  equal  to  that  amount.  It  is  thus  necessary  to  cover  not 
only  the  price  of  the  goods  and  the  charges  at  shipping,  but  such 
further  sum  as  may  enable  the  shipper,  in  case  of  loss,  to  recov^er 
the  amount  of  the  Invoice  clear  of  any  deductions. 

III.     Account  Sales.     [See  page  63.] 

An  Account  Sales,  is  a  particular  account  of  goods  sold 
on  commission  by  the  Agent  who  made  the  sales,  transmitted 
by  him  to  his  employer ;  containing  the  name  of  the  vessel  by 
which  the  goods  were  received,  and  for  whose  account  and 
risk  they  have  been  sold  ;  with  the  charges  attending  the  sale 
deducted  from  the  amount  of  the  whole.  Goods  when  sent 
to  an  agent  for  sale,  are  said  to  be  consigned  to  him.  The 
person  who  sends  the  goods,  is  called  the  consigner,  the  goods 
his  consignment,  and  he  to  whom  they  are  sent,  the  consignee; 
and  the  account  transmitted  to  him,  is  called  an  invoice  of  goods 
consigned  for  sale  and  returns.  The  account  returned  by  the 
consignee  to  the  consigner,  is  called  an  Account  Sales.  The 
sum  that  remains  after  all  charges  have  been  deducted,  is  called 
the  net  proceeds;  which  sum  is  due  to  the  consigner. 

IV.     Bills  or  Promissory  Notes. 

A  Bill,  is  a  written  obligation  by  which  one  party  binds 
himself  to  pay  money  to  another  party  at  a  specified  time. 
Bills  are  divided  into  two  kinds — Inland  and  Foreign.  An 
Inland  Bill,  is  payable  in  the  same  country  in  which  it  is 
drawn  ;  such  bills  are  distinguished  into  Drafts,  and  Promissory 


54  BILLS  OF  EXCHANGE. 

JYotes ;    the   former  containing   an  order,  the   latter  a  promise ; 
both  being  of  equal  obligation,  and  entitled  to  the  same  privileges. 
A  Draft,  is  a  bill  expressed  in  the  form  of  an  order,  signed  by 
one  party  and  addressed  to  another,  requiring  the  latter  to  pay  a 
specified  sum  to  the  former,  or  to  the  order  of  a  third  person. 

A  Promissory  JVote,  is  a  bill  expressed  in  the  form  [of  a 
promise  from  one  party  to  pay  another. 

A  Foreign  Bill  of  Exchange,  is  a  written  order  from  a  party 
in  one  country,  addressed  to  another  party  in  a  different  country, 
requiring  him  to  pay  a  certain  sum  to  his  order,  or  to  a  third, 
or  fourth  party,  at  a  specified  time. 

A  Set  of  Exchange,  is  two  or  three  copies  of  the  same  bill, 
drawn  at  the  same  time,  at  so  many  days  or  months  after  sight, 
and  all  of  the  same  tenor  and  date.  As  a  security  against 
accidents  or  delays,  each  bill  is  forwarded  by  a  different  ship 
or  post.  When  one  of  them  is  accepted  and  paid,  the  others 
are  void  or  of  no  use. 

Days  of  Grace,  are  a  certain  number  of  days  granted  after  the 
term  expressed  in  the  bill  has  expired.  These  vary  according  to 
the  usage  of  different  countries.  In  the  United  States,  three  days 
are  allowed  ;  and  payment  cannot  be  demanded  till  the  last  of 
these  three  days.  Bills  drawn  at  sight,  however,  must  be  paid  or 
protested  when  presented. 

The  Term  of  a  Bill,  is  the  time,  at  the  end  of  which  it  is  to  be 
paid.  It  is  sometimes  a  specified  time  after  date,  and  sometimes 
it  is  a  specified  time  after  sight,  that  is,  after  acceptance. 

1.  Forms  of  Drafts. 

JVeiv  York,  December  1,  1836. 
$500. 

Two  months  after  date,  pay  to  my  order  Five  Hundred  Dollars, 
for  value  received. 

A.  B. 
To  James  Brown  Sf  Co.  ) 
Boston.      ^ 

Boston,  December  10, 1836. 
$100. 

Ten  days   after  sight,  pay  to  William  Jones,  or   order,  One 
Hundred  Dollars,  for  value  received. 

C.  D. 
To  Thomas  King,  ) 
New  York.      ^ 


BILLS    OF    EXCHANGE.  55 

2.  Form  of  a  Promissory  Note. 

JVeto  York,  December  15, 1836. 
$1,000. 

Three  months  after  date,  I  promise  to  pay  A.  B.,  or  order,  One 
Thousand  Dollars,  for  value  received. 

E.  P. 

3.  Foreign  Bill  of  Exchange. 

Mw  York,  December  15, 1836. 
£800  Sterling. 

Sixty  days  after  sight  of  this  my  first  of  exchange, 
(second  and  third  unpaid,)  pay  to  the  order  of  A.  B.,  Eight  Hundred  Pounds 
Sterling,  for  value  received. 

R.  Rankin. 
To  Baring,  Brothers  Sf  Co.  7 
London.      J 

la  drawing  the  second  bill,  write  my  first  and  third  unpaid, 
and  in  drawing  the  third  bill,  write  my  first  and  second  unpaid. 

Requisites  of  Bills. — In  a  regular  bill,  the  four  following  par- 
ticulars are  necessary, — 1st.  The  sum,  place,  and  date  ; — 2d. 
The  time  of  payment ; — 3d.  The  person  to  whose  order  it  is 
payable  ; — 4th.  The  address  and  subscription. 

In  mercantile  phraseology,  the  person  who  draws  the  bill  is 
termed  the  drawer;  the  person  in  whose  favor  it  is  drawn,  the 
remitter  ;  the  person  on  whom  it  is  drawn,  the  drawee  ;  and  after 
he  has  accepted  it,  the  acceptor.  Those  persons  into  whose  hands 
the  bill  may  have  passed  previously  to  its  being  paid,  are  from 
their  writing  their  names  on  the  back,  termed  endorsers  ;  and  the 
person  in  whose  possession  the  bill  is  at  any  given  period,  is 
termed  the  holder  or  possessor. 

Discounting  Bills. — To  discount  a  bill,  means  to  procure  cash 
for  it,  before  it  becomes  due  ;  and  a  bill  is  therefore  said  to  be 
discounted,  when  it  is  endorsed  to  any  person  or  banking  company 
who  pays  the  proceeds,  that  is,  the  net  sum,  deducting  the 
discount. 

A  Protest,  is  a  document,  executed  by  a  Notary  Public,  de- 
claring that  a  bill  was  duly  presented  for  acceptance  or  payment, 
at  the  proper  time  and  place,  and  that  acceptance  or  payment  was 
refused,  and  for  what  reasons ;  and  the  duty  of  the  holder  thus 


56  ACCOUNTS    CURRENT. 

performed,  secures  his  right  of  recourse  against  the  Drawer 
and  Endorsers,  jointly  and  severally,  for  payment,  interest,  and 
damages. 

V.     Accounts  Current. 

An  Account  Current,  contains  a  statement  of  the  mercantile 
transactions  of  one  person  with  another  ;  disposed  in  the  form  of 
debtor  and  creditor,  and  which  exhibits  the  state  of  their  affairs 
up  to  the  date  at  which  it  is  made  out. 

The  term  Dr.  is  placed  on  the  left,  to  indicate  that  the  corres- 
pondent is  debtor  for  the  sums  on  the  left,  and  the  term  Cr.  is 
placed  on  the  right,  to  indicate  that  the  correspondent  is  creditor 
for  the  sums  on  the  right.  The  word  To,  is  employed  to  denote 
debtor,  and  the  word  By,  to  denote  creditor. 

It  requires  a  practical  knowledge  of  Book-keeping,  to  under- 
stand fully  the  nature  of  an  Account  Current. 


CHAPTER    VIII. 

ARRANGEMENT ROUTINE EXEMPLIFICATION. 

The  method  of  Book-keeping  by  Double  Entry,  however 
familiar  to  accountants,  appears  difficult  and  intricate  to  almost 
every  person  who  has  not  practised  it.  In  order,  therefore,  to 
present  a  comprehensive  view  of  its  arrangement  and  routine,  we 
shall  now  illustrate  the  method  of  stating  the  assets  and  debts  of 
a  mercantile  establishment  at  the  beginning  of  each  year,  and  also 
the  mode  of  transferring  to  the  Journal  the  transactions  recorded 
in  the  Subsidiary  Books. 

The  Journal  ought  to  contain  at  the  beginning  of  each  year,  a 
summary  statement  of  the  monies  owing  to  and  by  the  concern, 
in  the  following  form  : — 


January  1,  1836. 

Sundries,  Dr.  to  Stock, 
For  balances  in  our  favor. 


Cash,  .... 
Merchandise, .  . 
Bills  Receivable, 
Richard  Conder, 
William  Simpson, 
James  Johnson,  . 


in  hand,  .  . 
^  inventoiy, 
bills  in  hand, 
due  by  him. 


Stock,  Dr.  to  Sundries, 
For  balances  against  us. 


To  Bills  Payable,  . 
To  William  Jones, . 
To  James  Brown,  . 


bills  unpaid, 
due  to  him,  . 


4,800 

2,588 

1,575 

325 

215 

175 


9,679 


450 
325 


50 


58 


CASH    BOOK. 


The  Cash  Book. — Our  next  illustration  shall  be  of  a  mer- 
chant's Cash  Book.  The  following  is  an  example  of  the  receipts 
and  payments  which  daily  occur  in  a  counting-house  : — 


Dr. 


1836 
Jan.l 


//  25 
//  30 


Recsipts. 


To  Balance  on  hand,  .  .  . 
To  James  Kent, 

on  account, 

To  Interest, 

for    discount  allowed  by 

Hume  &  Co 

15  I  To  James  Kent, 

in  full, 

To  Bills  Receivable, 

received  No.  71,  J.  Hill, 
To  Interest, 

dividend  at  Branch  Bank, 


1836 

1,855 

36 

Jan.2 

387 

88 

//  4 
n     8 

13 

50 

n   10 

.12 

12 

N   20 

178 

00 

n   31 

150 

00 

2,696 

86 

Payments. 

By  Bills  Payable, 

No.  85,  S.  James,  .  .  . 
By  James  Wilson, 

paid  him, 

By  Robert  Hall, 

on  account, 

By  Hume  &  Co. 

in  full 

By  Bills  Payable, 

No.  86,  R.  Johnson,  .  . 
By  Robert  Hall, 

in  full, 

By  Balance,*  to  next  month, 


500 

75 

375 

1,082 

221 

31 
410 


*  The  Balancet  of  Cash,  on  either  side  of  the  Ca«h  Book,  are  omitted  in  Journalizing. 


The    above    entries,    when   transferred   to   the   Journal,    are 
arranged  as  follows  : — 


Januarv,  1836. 
Cash,  Dr.  to  Sundries , 
Received  this  month. 

To  James  Kent, 

5th,        on  account  Cotton, 387  88 

15th,        in  full  for        do 112  12 

To  Interest, 

10th,        disct.  allowed  by  Hume  «fc  Co 13  50 

30th,        for  dividend  at  Branch  Bank,     ....    150  00 

To  Bills  Receivable, 

25th,        No.  71,  J.  Hill, 


Sundries,  Dr.  to  Cashy 
Paid  this  month. 

Bills  Payable, 

2d,        No.  85,  S.  James, 500  00 

20th,        No.  86,  R.  Johnson, 221  37 

Jarnes  Wilson, 

4th,        his  Bill  of  Parcels, 

Robert  Hall, 

8th,        on  account 375  00 

31st,        in  full,    .    ' 31  74 

Hume  &  Co. 

10th,        in  full, 


500 

163 

178 


841 


721 

75 

406 
2,286 


50 


BILL    BOOK    ENTRIES. 


59 


The  preceding  entries,  are  sufficient  to  convey  an  idea  of  the 
facilities  afforded  by  monthly  Journalizing.  There  are,  in  most 
of  the  above  receipts  and  payments,  two  transactions  belonging  to 
each  account ;  and  these  are  merged,  in  the  Journal,  in  one 
entry,  which  greatly  abridges  and  simplifies  the  posting  in  the 
Ledger.  But  in  real  business,  the  Cash  transactions,  are  as 
twenty  to  one,  compared  to  the  preceding  specimen  ;  and  the 
number  of  entries  collected  under  one  title,  is  consequently  large. 
The  result  of  such  an  arrangement,  renders  the  balancing  of  the 
books,  at  the  end  of  the  year,  comparatively  easy,  which  is  an 
advantage  of  no  trifling  importance. 

The  Bill  Book. — Next  in  importance  to  the  cash  are  the 
bill  transactions  of  a  mercantile  house.  When  bills  come  to  hand, 
or  acceptances  are  granted,  the  rule  is  to  enter  each  in  the  Bill 
Book,  with  a  statement  of  particulars,  thus  : — 


BILLS  RECEIVABLE.— Form  of  Entry. 

No. 

When 
received. 

On  account 
of 

DrvLwily 

Dau. 

Term. 

Draum on 

When  due. 

Amount. 

1 
2 
3 

I&i6 
March    8 

//      10 

„      12 

J.  Bailey, 
T.  Watson, 
J.  Bailey, 

W.  Adams, 
J.  Jones, 
R.  James, 

March    1 

n         3 
1,        5 

60  days, 
30     „ 
90      n 

T.  Jones, 
J.  Adams, 
D.  Hill, 

May    1-4 
April  3—6 
June  5—8 

587  78 
325  00 
240  55 

For  the  conTenience  of  prinling-,  several  coluinni  which  are  used  in  real  business  are  omitted  in  the  above  specimen. 

The  Journal  Entries  for  the  preceding  Bills  are  as  follows  : — 


March,  1836. 

Bills  Receivable,  Dr.  to  SundrieSf 
For  Bills  received  this  month. 

To  James  Bailey, 

8th,        No.  1,  T.  Jones,  due  May  4,  . 
12th,        No.  3,  D.  Hill,  due  June  8,     . 

To  T.  Watson, 

10th,        No.  2,  J.  Adams,  due  April  6, 


587  78 
240  55 


828 

325 

1,153 


60 


BILLS  PAYABLE. 


Bills  Payable,  are  acceptances,  or  promissory  notes,  payable 
to  other  parties,,  and  may  be  termed  the  reverse  of  Bills  Re- 
ceivable. The  following  is  an  example  of  the  manner  in  which 
they  are  entered  in  the  Bill  Book. 


bills  payable—Form  of  entrt. 

No. 

Drawn  by 

DaU. 

To  order  of 

On 

account  of 

Term. 

When 
accepted. 

March  12, 

f>       14, 

n         16, 

When  due. 

Amount. 

1 
2 
3 

J.  Allen, 
Chas.  Fox, 
J.  Clark, 

March  10. 
n        7. 
„      5. 

J.  Jones, 
J.  Brown, 
H.Clay, 

J.  Allen, 
C.  Fox, 
J.  Clark, 

90  days  sight, 
15    //      date, 
30  days. 

June      10-13 
March  22-25 
April      5—8 

235  25 
145  75 
341  25 

The  Journal  Entries  for  the  above  Bills  are  as  follows  : — 


Sundries,  Dr.  to  Bills  Payable, 
Accepted  this  month. 

James  Allen, 

12th,  No.  1,  due  June  13, . 
Charles  Fox, 

14th,  No.  2,  due  March  25, 
John  Clark, 

16th,        No.  3,  due  April  8,  . 


235 
145 
341 


722 


The  Invoice  Book. — The  use  of  most  of  the  Subsidiary 
Books,  is  sufficiently  pointed  out  by  their  names  ;  but  we  shall 
add  a  few  remarks  on  Bills  of  Parcels.  In  former  times,  it  was 
the  practice  to  fold  them  in  a  uniform  size,  and  after  writing  on 
the  back  the  name  of  the  seller,  date,  &c.,  to  put  them  away  in 
bundles.  But  whenever  the  purchases  are  extensive,  and  the 
Bills  of  Parcels  numerous,  the  better  mode  is  to  paste  them  into 
a  blank  book,  made  of  cartridge-paper,  of  such  a  size  as  to  contain 
the  Bills  of  Parcels  for  one  whole  year.  This  book  should  have 
its  pages  numbered,  and  an  index,  with  columns  for  dollars  and 
cents.  Arrange  the  Bills  of  Parcels  as  fast  as  received,  one 
under  the  other,  in  regular  order,  and  place  the  total  of  each  in 
the  money  column  ruled  for  that  purpose,  taking  care  that  each 


INVOICE    BOOK. 


61 


amount  is  entered  opposite  to  its  respective  bill.     The  following 
is  a  specimen  : — 


New  York,  ;Warc/i  1,1836. 

Messrs.  James  Brown  &  Co. 

Bought  of  R.  Johnson, 

170 

00 

20  ps.  Fine  Linen,  ^  4  75, 95  00 

15  "          do.          ^  5  00, 75  00 

170  00 

New  York,  March  4, 1836. 

Messrs.  James  Brown  &  Co. 

Bought  of  Robert  James. 

172 

80 

2  doz.  Youth's  Hats,    ^  24  00, 48  00 

2    >'    Men's       do.      (a)  60  00, 120  00 

4  Cases,  and  Packing,  fa)    1  20, 4  80 

172  80 

New  York,  March  15,  1836. 

Messrs.  James  Brown  &  Co. 

Bought  of  R.  Johnson. 

268 

75 

11  ps.  Linen,  25  yds.  ea.— 275  yds.  to)  75  cts.     .    206  25 
5  //      do.      25    n    ea.— 125    "    (a)  50  cts.     .      62  50 

268  75 

611 

55 

The  above  purchases  are  Journalized  as  follows  : — 


March,  1836. 

Merchandise,  Dr.  to  Sundries, 
For  purchases  this  month. 

To  R.  Johnson, 

1st,        35  ps.  Linen, 170  00 

15th,        16  /'      do 268  75 

To  Robert  James, 

4th,        4  doz.  Hats,  assorted, 


438 
172 
611 


62 


BOOK  OF  SHIPMENTS, 


The    Book    of    Shipments. Invoices   of    Shipments,    are 

accounts  of  goods  exported,  with  the  charges  attending  them. 
Some  mercantile  houses  enter  the  amount  of  the  Shipments  in  the 
Day  Book  ;  but  the  modern  practice  is  to  omit  these  entries  in 
the  Day  Book,  and  keeping  the  Invoice  Book  Outward  as  a  book 
of  record  for  the  original  entries  of  the  Shipments,  to  Journalize 
it  monthly  in  the  same  manner  as  the  Cash  or  Bill  Books.  The 
form  of  an  Invoice  of  goods  shipped  to  order,  is  as  follows  : — 

Invoice  of  Goods,  shipped  hy  James  Brown  ^  Co.  in  the  Venus,  John  King, 
Master,  for  JVew  Orleans,  by  order  of  R.  Johnson,  Merchant  there,  for  his 
account  and  risk,  and  to  him  consigned. 

New  York,  March  15,  1836. 


R.  J. 

No.  1 

2 
3 


48  ps.  Cambric  Check,  1,344  yds.  fa)  40  cts.     537  60 
Trunk,  and  Packing, 5  25 

51  n    Calico  Check,  1,428  yds.      (a)  25  cts.     357  00 
Trunk,  and  Packing, 4  75 

15  /'    Fine  Calico,  360  yds.    .      fa)  40  cts.     144  00 

6  r'    Cambric  Check,  144  yds.     fa)  50  cts.       72  00 

20  "    Muslin  Check,  560  yds.        fa)  30  cts.     168  00 

Trunk,  and  Packing, 3  50 


Charges. 

Cartage,  Shipping  charges,  &c 4  00 

Commission,  2^  r  cent  on  1,297  35,    .     .     .  32  43 

Insurance,  2  r  cent  on  1,318,  and  Policy,  1  25,  27  61 

Commission,  ^  F  cent  on  sum  insured,     .     .  6  59 


542 
361 

387 


1,292 


70 


1,362 


The  Journal  Entries  which  result  from  the  foregoing  Invoice 
are  as  follows  : — 


March,  1836. 

R.  Johnson,  Dr.  to  Sundries, 
15th,    For  Goods,  ^  the  Venus  for  New  Orleans,  ^  Invoice  Book. 

To  Merchandise, 

To  Commission 

To  Insurance, 

To  Charges, 


ACCOUNT    SALES    BOOK. 


63 


Account  Sales  Book. — In  this  book  are  entered  the  sales  of 
goods  received  on  consignment,  together  with  the  charges  incurred 
upon  thera.  The  forms  of  making  out  an  Account  Sales  are 
various.  Some  accountants  enter  the  charges  on  the  left  hand 
page,  and  the  quantity,  value  and  price  of  the  goods  on  the  right, 
in  the  manner  of  Dr.  and  Cr.  In  this  case,  the  difference 
between  the  two  sides  exhibits  the  net  proceeds. 

In  the  following  example,  we  first  specify  the  quantity,  price 
and  amount  of  the  goods,  and  to  whom  sold  ;  next  the  various 
charges  attending  the  sales,  including  commission  ; — the  difference 
between  the  gross  amount  of  the  sales,  1,312,  and  the  charges, 
77  30,  is  the  net  proceeds  due  to  the  consigner. 

AccoujsT  Saue  of  ^00  pieces  Lanen^  received  by  the  Union  from  Dublin, 
on  account  James  Forbes  of  that  place. 


1836 
Mar.  9 


Sold  to  Barclay  &  Co.  at  4  months, 


Linen,  No. 


20  pieces, 
30      " 
25      >' 

17  n 

23  n 

25  n 

60      » 
200  pieces. 


Charges. 


(a) 
(a) 
Co) 
(a) 
(a) 
(a) 


5  50 

6  62^ 
6  00 
6  50 

6  75 
5  50 

7  50 


Freight,  Custom-house  Fees,  &c 38  50 

Cartage  and  Porterage, 1  25 

Storage  and  Advertising, 4  75 


Commission  on  1,312,  at  2«i  r  cent, 


To  James  Forbes,  for  net  proceeds, 


44  50 

32  80 


New  York,  March  11, 1836. 

Errors  Excepted, 

A.  B. 


110 
198 
150 
110 
155 
137 
450 


1,312 


77 


1,234 


00 


30 


70 


Merchants  usually  subjoin  the  words  '  Errors  Excepted,'  to 
their  signature,  on  every  account  which  they  subscribe,  in  order 
that  they  may  have  it  in  their  power  afterwards  to  correct  errors, 
should  any  be  discovered. 


64  ACCOUNTS    CURRENT. 

Journal  Entries  resulting  from  the  Account  Sales  :- 


March,  1836. 

Barclay  &  Co.,  Dr.  to  Sales  of  Consignments, 

.2 

! 

9th,        for  amount  of  Sales  200  ps.  Linen,  r  the 
Union,  for  account  James  Forbes,    .     .     . 

1,312 

00 

Sales  of  Consignments,  Dr.  to  Sundries. 

11th,        for  proceeds,  &c.,  of  T-inen,  r  the  Union. 

To  Consignment  Charges, 

44 

32 

1,234 

50 
80 
70 

To  Commission, 

To  James  Forbes,     ...     for  net  proceeds,     .     .     . 

1,312 

00 

We  have  given  examples  of  the  Cash  Book,  Bill  Books, 
Invoice  Book,  Book  of  Shipments,  and  Account  Sales  Book  5 
which  form  the  groundwork  or  materials  for  the  Journal.  The 
Day  Book  contains  a  record  of  such  occasional  entries  as  do  not 
properly  belong  to  the  Subsidiary  Books.  Such  entries  are  in 
general  very  few,  because  in  every  well-regulated  counting-house 
the  Subsidiary  Books  are  used  to  record  almost  every  transaction 
that  takes  place. 

Accounts  Current. — Accounts  Current,  are  rather  the  result 
than  a  constituent  part  of  Book-keeping,  being  written  out  from 
the  Ledger  and  Journal  with  very  slight  variation  or  addition. 
Accounts  Current  are  prepared  for  transmission  to  correspondents, 
and  contain  the  receipts,  payments,  and  other  transactions  on  their 
account  during  the  preceding  six  or  twelve  months.  The  follow- 
ing is  an  example  : — 


Dr.        James  Thompson,  Esq.  JSTew  Orleans,  in  account  current  with  A.  B.  JVew  York,        Cr. 


1836 
June  30 

July  14 
>t    23 

Oct  12 
f,    18 

Dec.  31 


To  Balance  of  account 

dered,  .... 
To  Goods,  ^  invoice, 
To  Cash,  ^  receipt,  . 
To  Goods,  ^  invoice, 
To  your  draft  paid  Hill, 
To  Postage,  to  date,  . 


New  York,  Dec.  31, 1836. 


325 
750 
325 
150 
125 
1 


1,677  54 


1836 
Aug.  15 

Sept.  30 

Dec.  31 


By  net  proceeds  of  Cotton, 
^  Cuba,  due  Sept.  15,  . 

By  proceeds  of  Sugar,  ^ 
Louisa,  due  Oct.  15,  .    . 

By  Balance,  carried  to  new 
account, 


875 

578 


1,677  54 


Errors  Excepted, 


A.  B. 


ACCOUNTS    CURRENT.  65 

We  have  here  on  the  Dr.  side,  all  the  payments  made,  or 
responsibilities  incurred,  for  our  correspondent;  and  on  the  Cr, 
side,  the  different  receipts  on  his  account.  The  balance,  being 
the  difference  between  the  Dr.  and  Cr.  sides,  is  carried  to  the 
next  year. 


CHAPTER  IX 


q,UERIES  AND  ANSWERS  ON  THE  PRINCIPLES  AND  PRACTICE  OP 
BOOK-KEEPING. 


The  following  queries  and  answers  are  intended  to  impress 
upon  the  mind  the  chief  points  in  the  daily  practice  of  business ; 
and  the  learner  will  derive  the  greatest  advantage  from  an 
attentive  study  of  them. 

What  is  Book-keeping  ? 

Ans.  Book-keeping  is  the  art  of  recording  property,  so  as 
to  show  at  all  times  the  value  of  the  whole  capital  and  of  each 
of  its  component  parts. 

By  how  many  methods  may  books  be  kept  on  distinct  prin- 
ciples ? 

Ans,  The  form  of  keeping  books  varies  according  to  the 
nature  of  the  business ;  but  there  are,  strictly  speaking,  only 
two  methods  founded  upon  distinct  principles ;  namely,  Single 
and  Double  Entry. 

What  is  meant  by  Single  Entry  ? 

Ans.  Single  Entry  chiefly  records  transactions  by  simply 
debiting  the  person  who  receives  any  thing,  and  crediting  the 
person  who  gives  or  delivers  any  thing.  Of  course  the  Ledger 
affords  the  owner  no  other  knowledge  than  the  debts  which  are 
owing  to  him  and  what  he  owes  to  others. 

What  is  meant  by  Double  Entry  ? 

Ans.  When  each  sum  or  amount  is  entered  twice  in  the 
Ledger ;  (hence  Double  Entry,)  namely,  on  the  Dr.  side  .of 
one  account,  and  on   the    Cr.  side  of  some   other  account  or 


QUERIES    AND    ANSWERS.  67 

accounts.  The  Ledger  exhibits  not  only  the  debts  due  to,  or 
by  you,  as  in  Single  Entry,  but  also  the  amount  of  cash  and 
bills,  the  amount  of  the  purchases  and  sales,  the  value  of 
the  goods  on  hand,  the  gain  or  loss  on  each  article,  or  on 
the  whole. 

What  information  ought  a  Merchant's  books  to  exhibit'? 

Ans.  The  debts  owing  to  and  by  him  ;  the  goods  or  other 
property  belonging  to  him  ;  the  amount  sold,  or  otherwise 
disposed  of;  and  the  quantity  and  value  still  on  hand. 

What  is  the  use  of  the  Day  Book  ? 

Ans,  The  Day  Book  records  the  sales  or  disposal  of  goods ; 
and  every  other  transaction  which  cannot  be  entered  with  pro- 
priety, in  the  Subsidiary  Books. 

How  many  Subsidiary  Books  are  generally  used  ? 

Ans.  This  depends  on  the  nature  of  the  business;  but  the 
most  usual  are  the  following  : — Cash  Book,  Bill  Book,  Invoice 
Book,  Book  of  Shipments,  and  Sales  Book, 

What  do  the  Subsidiary  Books  contain  ? 

Ans.  The  Cash  Book  contains  all  receipts  and  payments  of 
money ;  the  Bill  Book,  all  bills  received  and  accepted  ;  the 
Invoice  Book,  all  goods  purchased;  the  Book  of  Shipments, 
all  goods  shipped  off  or  exported  ;  and  the  Sales  Book,  the 
sales  of  all  goods  received  on  consignment. 

What  does  the  Account  Current  Book  contain  ? 

Ans.  It  contains  duplicates  of  the  accounts  as  they  stand 
in  the  Ledger,  with  the  particulars  of  every  item,  arranged 
according  to  the  dates,  being  an  exact  copy  of  the  account 
transmitted  or  delivered  to  the  party  whose  name  it  bears. 


I.    THE  LEDGER  ACCOUNTS. 

Wliat  is  the  use  of  the  Ledger  ? 

Ans.  The  Ledger  collects  together  articles  of  the  same 
kind,  under  their  respective  heads.  It  is  divided  into  several 
accounts,  the  Dr.  and  Cr.  of  which  are  opposite,  to  show  how 
each  account  has  been  affected  after  these  entries  have  been 
made. 


68  QUERIES    AND    ANSWERS. 

What  is  meant  hy  the  terms  Dr.  and  Cr.  ? 

Ans.  These  terms  are  used  to  denote  the  increase  or  decrease 
of  an  account. 

Explain  more  particularly  the  terms  Dr.  and  Cr.  ? 

Ans.  Any  thing  on  the  debtor  or  left  hand  page,  increases 
the  account,  and  any  thing  entered  on  the  creditor  or  right 
hand  page,  diminishes  it. 

How  many  kinds  of  accounts  does  the  Ledger  contain  1 
Ans.     Accounts  of  Persons,  Property,  and  Profit  and  Loss. 

What  do  the  accounts  of  Persons  contain  ? 

Ans.  On  the  Dr.  side,  the  sums  by  which  that  person  has 
become  indebted  to  you ;  and  on  the  Cr.  side,  the  sums  by 
which  you  have  become  indebted  to  him. 

What  do  accounts  of  Property  contain  ? 

Ans.  On  the  Dr.  side,  the  property  which  you  receive ; 
and  on  the  Cr.  side,  the  property  which  you  deliver. 

What  do  accounts  of  Profit  and  Loss  contain^ 
Ans.     On  the  Dr.  side,  all  your  losses ;  and  on  the  Cr.  side, 
all  your  gains. 

II.    JOURNALIZING. 

What  is  the  use  of  the  Journal  ? 

Ans.  The  Journal  contains  an  arrangement  of  the  trans- 
actions, collected  monthly  from  the  Subsidiary  Books,  with  the 
Drs.  and  Crs.  pointed  out,  that  they  may  be  easily  posted 
into  the  Ledger. 

What  is  the  general  rule  for  Journalizing'? 

Ans.  Whatever  is  received,  or  person  accountable  to  you,  is 
Dr.  to  whatever  is  delivered,  or  person  to  whom  you  are  ac- 
countable. 

1.  How  are  the  following  Cash  transactions  Journalized? 

When  you  receive  payment  of  a  personal  account  ? 
Ans.     Cash,  Dr.  to  A.  B.  (from  whom  received.) 
When  you  pay  a  personal  account^ 
Ans.     A.  B.,  (to  whom  paid,)  Dr.  to  Cash. 


QUERIES    AND    ANSWERS.  69 

WTien  you  receive  money  not  connected  with  any  account^ 

Ans.  If  it  be  a  gain  arising  from  the  business,  I  enter  Cash, 
Dr.  to  Profit  and  Loss;  if  it  be  a  legacy,  Cash,  Dr.  to  Stock. 

When  you  pay  money  not  connected  with  any  account  ? 

Ans.  If  for  incidental  expenses,  enter  Charges,  Dr.  to  Cash; 
if  for  personal  expenses,  Private  Account,  J)r.  to  Cash;  if 
for  interest,  discount  allowed,  Sic,  Interest,  Dr.  to  Cash. 

How  is  the  Cash  Book  Journalized  monthly'? 

Ans.    For  all  money  received,     .     .     Cash,  Dr.  to  Sundries. 
For  all  money  ^aic/,     .     .     .     Sundries,  Dr.  ^o  CasA. 

Specifying  particulars,  and  classing  anicles  of  the  same  kind 
together. 

2.  How  are  the  following  Bill  transactions  Journalized  ? 

When  you  receive  a  bill  in  settlement  of  an  account  ? 

Ans.  Bills  Receivable,  Dr.  to  A.  B.  (from  whom  received.) 

When  you  give  your  note,  or  accept  a  bill^ 

Ans.  A.  B.,  (to  whom  granted,)  Dr.  to  Bills  Payable. 

When  you  receive  payment  of  a  note  or  bill  ? 

Ans.  Cash,  Dr.  to  Bills  Receivable. 

When  you  pay  a  promissory  note  bill  ? 

Ans.  Bills  Payable,  Dr.  to  Cash. 

When  you  discount  a  bill? 

Ans.  Sundries,  Dr.  to  Bills  Receivable. 

Cash, for  the  sum  received. 

Interest, for  the  discount. 

When  you  endorse  or  pay  away  a  bill  ? 

Ans.  A.  B.,  (to  whom  endorsed,)  Dr.  to  Bills  Receivable. 

How  is  the  Bill  Book  Journalized  monthly  ? 

Ans.  For  all  bills  received,  Bills  Receivable,  Dr.  to  Sundries. 

For  all  bills  accepted.  Sundries,  Dr.  to  Bills  Payable. 
Specifying  name,  number,  when  due,  and  sum. 

3.  How  are  the  following  transactions  Journalized  ? 
When  you  buy  goods  for  cash? 

Ans.  Merchandise,  Dr.  to  Cash. 

When  you  buy  goods  on  credit  ? 

Ans.  Merchandise,  Dr.  to  A.  B.  (the  seller.) 


70  QUERIES    AND    ANSWERS. 

When  you  purchase  goods  and  give  your  note  or  acceptance  ? 
A71S.  Merchandise,  Dr.  to  Bills  Fayable. 

When  you  pay  freight,  duty,  or  other  charges  on  goods? 
Ans,  Merchandise,  JDr.  to  Charges, 

How  is  the  Invoice  Book  Journalized  monthly  !■ 
Ans,  By  making  Merchandise,  jDr.  to  Sundries,  viz. — 
To  each  seller,    .     .     for  his  invoices  during  the  month. 

When  you  sell  goods  for  cash  ? 
Ans,  Cash,  Dr.  to  Merchandise, 

When  you  sell  goods  on  credit? 

Ans.  A.  B.,  (the  buyer,)  Dr.  to  Merchandise. 

When  you  sell  goods  and  receive  a  note  ? 
Ans.  Bills  Receivable,  Dr.  to  Merchandise, 

When  you  ship  goods  in  consequence  of  orders  ? 

Ans.  A.  B.,  (on  whose  account,)  Dr.  to  Sundries,  viz. — 

To  Merchandise,      ....     for  amount  of  goods. 

To  Charges, for  charges  at  shipping. 

To  Commission, for  commission. 

To  Insurance, for  premium  and  policy. 

When  you  ship  goods  as  an  Adventure  ? 

Ans.  Adventure  to ,  Dr.  to  Sundries,  viz. — 

To  Merchandise,       ....     for  the  amount. 

To  Charges, for  charges  at  shipping. 

To  Insurance,      *     ....     for  premium  and  policy. 

When  the  Agent  renders  you  an  Account  Sales  1 

Ans.  A.  B.,  (the  agent,)  Dr.  to  Adventure  to for  the  net 

proceeds,  which  if  greater  than  the  outset  charge,  the  difference  is 

gain. 

How  is  the  Account  closed? 

Ans.  Adventure  to  ,  Dr.  to  Profit  and  Loss ;  but  if 

there  has  been  a  loss,  this  entry  is  reversed. 

When  you  pay  charges  on  goods  consigned  ? 
Ans.  Consignment  Charges,  Dr.  to  Cash. 

When  you  sell  these  goods  ? 

•^W5.  If  for  cash,   .    Cash,  .  Dr.}  rr»    c  7      r  n      •  * 

If  on  credit, .    A.  B.^  .  Dr.  [  ^^  *"'^  "f  Conngnments. 


QUERIES    AND    ANSWERS.  71 

When  you  take  any  of  these  goods  to  account? 
Ans,     Merchandise,  Dr,  to  Sales  of  Consignments. 
When  the  Sales  are  closed,  what  is  the  Journal  entry  ? 
jlns.     Sales  of  Consignments,  Dr,  to  Sundries. 

To  Insurance,     ....     for  premium  and  policy. 

To  Consignment   Charges,     for  duty,  freight,  &c. 

To  Commission,  ....     on  insurance  and  sales. 

To  A.  B.,  (the  Consigner,)  for  net  proceeds. 

4.  How  are  the  following  transactions  in  Bankruptcy  stated  } 

When  the  failure  is  a  total  loss  ? 

Ans.  Profit  and  Loss,  Dr.  to  A.  B.  the  Bankrupt,  for  the 
amount  of  my  claim. 

When  a  partial  loss  is  sustained  ? 

Ans.  Profit  and  Loss,  Dr.  to  A.  B.,  for  the  sum  lost  by 
his  failure. 

in.    POSTING  AND  COMPARING  THE  BOOKS. 

What  is  meant  by  Posting  1 

Ans.  Posting  is  the  transferring  the  Journal  entries  into  the 
Ledger,  in  order  to  show  the  state  of  each  account. 

What  is  the  general  rule  for  posting '^ 

Ans.  Debit  the  account  that  is  Dr.  to  the  title  of  that  which 
is  Cr.,  and  credit  the  account  that  is  Cr.  to  the  title  by  that  which 
is  Dr. 

When  an  entry  is  posted,  what  do  you  do  next  ? 

Ans.  Mark  on  the  marginal  column  of  the  Journal  the  folio  of 
the  Ledger  where  the  entry  is  made,  and  in  the  Ledger  the  page 
of  the  Journal. 

What  is  meant  by  comparing  the  Books  ? 

Ans.  Examining  every  entry  before  it  is  Journalized  or  Posted  ; 
because  a  mistake  in  any  of  the  Subsidiary  Books  must  necessarily 
run  through  the  Journal  and  Ledger. 

How  is  this  accomplished  9 

Ans.  After  Journalizing  the  Subsidiary  Books,  the  Journal  must 
be  carefully  compared  with  each  book  before  posting  the  entries 
into  the  Ledger. 


72  QUERIES    AND    ANSWERS. 

What  is  the  best  plan  to  compare  the  Journal  and  Ledger  ? 

Ans.  By  two  persons  :  one  has  the  Journal  and  reads  the  Ledger 
folio,  the  title  of  the  account,  and  the  Drs.  and  Crs,,  while  the 
other  turns  to  the  account  in  the  Ledger,  and  marks  off  the  entry 
with  a  dot,  (or  \/j)  if  correct.  The  dots  in  the  Journal  show 
how  far  the  comparison  is  advanced,  and  the  marks  in  the  Ledger 
show  what  entries  are  compared. 

How  is  it  known  when  the  comparison  is  finished^ 

Ans.  By  glancing  over  the  Ledger  and  observing  if  the  mark 
of  comparison  be  affixed  to  each  entry  ;  if  not,  turn  to  the  entry 
in  the  Journal  which  had  not  been  marked,  and  observe  if  it  be 
right. 

What  is  the  best  plan  to  rectify  omissions  ? 

Ans.  By  inserting  the  entry  omitted  under  the  last  article, 
when  you  discover  the  omission,  and  making  a  cross  thus  +  against 
it  on  the  margin,  and  another  at  the  place  where  it  should  have 
been. 

If  you  have  written  a  line  entirely  wrongs  or  in  a  wrong 
place,  how  do  you  proceed  ? 

Ans.  Write  the  word  error  at  the  end,  prefix  a  cross,  and  omit 
or  cancel  the  sum. 

How  should  errors  be  cancelled  ? 

Ans.  By  drawing  a  line  lightly  through  them,  so  that  the  old 
writing  may  still  be  legible ;  by  which,  it  will  be  evident  that  the 
book  has  not  been  vitiated  for  a  fraudulent  purpose ;  and  the  same 
method  should  be  followed  in  correcting  errors  in  the  Journal. 


IV.     BALANCING  THE  LEDGER. 

What  is  meant  by  Balancing  ? 

Ans.  It  is  the  equilibrating  of,  or  making  equal,  all  the  accounts. 

What  is  the  design  of  balancing  the  books  ? 

Ans.  To  collect  the  various  branches  of  business  diffused 
through  the  Ledger,  into  a  concise  abstract  of  the  debts  owing  to 
and  by  you ;  the  property  you  have  on  hand,  together  with  the 
gain  you  have  made  or  the  loss  sustained  since  you  began  busi- 
ness, or  since  a  former  balance. 


QUERIES    AND    ANSWERS.  7.3 

What  is  meant  by  the  Balance  of  an  account  ? 

Ans.  Generally  the  difference  between  the  Dr.  and  Cr.  sides, 
which  must  be  the  sum  either  due  to  or  by  you  at  that  account. 

How  are  accounts  of  persons  balanced  ? 

Ans,  If  the  TJr.  side  be  greater,  credit  the  account  By  Balance 
for  the  difference  ;  being  a  debt  owing  to  you.  If  the  Cr.  side 
be  greater,  debit  it  To  Balance  for  the  difference  ;  being  a  debt 
due  by  you  ;  carrying  down  the  balance  on  the  opposite  side  of 
the  account,  which  is  done  in  the  same  manner  with  every  one 
that  has  a  balance,  whether  accounts  of  persons  or  property. 

How  is  the  Cash  Account  balanced  ? 

Ans.  Credit  it  By  Balance  for  the  difference;  being  the  cash 
in  hand. 

How  is  Bills  Receivable  balanced  9 

Ans.  Credit  it  By  Balance  for  the  difference ;  being  the  bills 
in  hand. 

Hoiv  is  Bills  Payable  balanced  ? 

Ans.  Debit  it  To  Balance  for  the  difference ;  being  the  bills 
owing  by  you. 

Hoio  is  Merchandise  balanced  when  the  ivhole  is  on  hand  ? 

Ans.  Credit  it  By  Balance  for  the  amount. 

How  is  Merchandise  balanced  when  the  whole  is  sold'^ 

Ans.  If  the  Cr.  side  be  greater,  the  difference  is  gain,  which  is 
closed  by  entering  on  the  Dr.  side  of  Merchandise,  To  Profit 
and  Loss.  If  the  Dr.  side  be  greater,  the  difference  is  loss,  and 
is  therefore  entered  on  the  Cr.  side  of  the  same  account,  By 
Profit  and  Loss;  transferring  the  sum  to  the  proper  side  of 
Profit  and  Loss  Account. 

How  is  an  account  of  Merchandise  balanced  when  only  a  part 
is  sold  ? 

Ans.  Credit  it  By  Balance  for  the  value  on  hand  ;  then  the 
difference  of  the  two  sides  will  exhibit  the  gain  or  loss  ;  and  the 
account  is  finally  closed  to  or  by  Profit  and  Loss,  as  the  case 
may  be,  transferring  the  amount  to  the  proper  side  of  the  latter 
account. 

How  are  Adventures  balanced  ? 

Ans.  In  a  similar  manner  as  the  preceding  accounts  of  Mer- 
chandise. 

10 


74  QUERIES    AND    ANSWERS. 

How  are  the  accounts  of  Ships,  Houses,  Lands,  or  the  like, 
balanced  when  the  property  is  sold  ? 

.^715.  The  interest  is  calculated  and  placed  on  the  Dr.  side  of 
the  property  ;  the  difference  then  is  profit  or  loss ;  and  the  account 
is  closed  accordingly. 

How  are  such  accounts  balanced  when  the  property  is  on  hand  ? 

Ans.  By  calculating  the  interest,  and  placing  it  as  before  ;  and 
crediting  the  property  By  Balance  for  the  present  value  ;  the 
difference  is  profit  or  loss,  which  is  entered  as  before. 

How  is  the  account  of  Insurance  balanced^ 
Ans.  Credit  it  By  Balance   for  the  difference  (if  any),  being 
the  premiums  still  due  to  you. 

How  is  the  Private  Account  closed  !■  * 
Ans,  By  Stock  ;  and  transfer  the  amount. 

How  are  the  accounts  of  Charges,  Interest,  and  Commission 
closed  ? 

Ans.  To  or  By  Profit  and  Loss,  as  the  differences  happen 
either  to  be  in  favor  of,  or  against  you. 

How  is  Profit  and  Loss  Account  closed^ 

Ans.  By  transferring  the  result,  if  gain,  to  the  Cr.  side ;  but  if 
loss,  to  the  Dr.  side,  of  Stock. 

How  is  the  Stock  Account  closed  !■ 

Ans.  To  Balance  for  net  Capital,  or  By  Balance  for  net  de- 
ficiency. 

V.  GENERAL  EXTRACT  AND  PROOF. 

How  is  a  statement  of  your  affairs  made  out  ? 

Ans.  By  collecting  all  the  balances  of  the  accounts  in  the 
Ledger,  being  my  debts  and  effects,  and  arranging  them  in  the 
form  of  Dr.  and  Cr. 


*  Some  accountants  transfer  the  amount  of  private  account,  or  house  expenses, 
to  Profit  aiid  Loss  ;  but  this  is  manifestly  improper.  A  merchant's  real  gain  may 
be  $3,000  a  year;  if  he  expends  $2,500  for  his  personal  expenses,  and  the  support 
of  his  family,  and  if  this  sum  were  placed  at  the  debit  of  profit  and  loss,  his  books 
would  only  exhibit  a  gain  of  $500  ! 


QUERIES    AND    ANSWERS.  7l5 

Explain  particularly  how  the  Balance  Account  is  to  be 
arranged  ? 

Ans.  A  sheet  of  paper  is  ruled  in  the  form  of  Dr.  and  Cr. 
with  money  columns,  and  headed  as  follows  : 

Dr.  .         .         .        Balance         .  .  .  Cr» 

On  the  Dr.  side  place  the  balances  due  or  belonging  to  you  ;  and 
on  the  Cr.  side  the  balances  due  hy  you ;  the  difference  will  then 
exhibit  your  net  Capital  or  deficiency,  which  must  always  agree 
with  the  Balance  of  Stock  Account. 

Why  ought  the  difference  of  the  Stock  Account  to  agree  with 
that  of  Balance  Account  at  the  closing  of  the  Ledger^ 

Ans.  The  balance  of  the  Stock  Account  shows  the  net  Capital, 
and  the  other  balances  show  its  component  parts.  If  therefore  an 
extract  be  made  of  the  latter,  their  sum  must  be  equal  to  the 
balance  of  Stock  ;  in  which  equality  consists  the  great  proof  of 
Book-keeping. 


VI.     MERCHANTS'  ACCOUJNTTS. 

What  is  an  Account  Sales  ? 

Ans.  It  is  an  account  of  goods  sold  on  commission,  drawn  out 
by  the  agent  and  sent  to  his  employer,  who  made  the  con- 
signment. 

What  is  meant  hy  the  JVet  Proceeds  ? 

Ans.  The  sum  that  remains  after  all  charges  attending  the 
sales  have  been  deducted,  and  which  is  due  to  the  person  from 
whom  you  received  the  consignment. 

What  is  meant  hy  an  Account  Current  ? 

Ans.  An  Account  Current  is  a  state  of  our  mercantile  transac- 
tions with  any  person,  drawn  out  in  a  plain,  circumstantial  manner, 
arranged  in  the  form  of  Dr.  and  Cr. 

Does  it  require  a  knowledge  of  Book-keeping  to  understand 
the  nature  of  an  Account  Current  ? 

Ans.  Yes :  because  the  transactions  are  narrated  as  expressed 
in  the  Journal ;  and  where  the  collective  term  Sundries  occurs 
in  the  Ledger,  every  particular  is  supplied. 


76  QUERIES  AND  ANSWERS. 


VII.  PARTNERSHIP  OR  COMPANY  ACCOUNTS. 

We  conclude  these  queries  by  proposing  the  following  in  com- 
pany trade. 

What  is  Partnership  ? 

Ans,  Partnership  is  a  contract  entered  into  by  two  or  more 
persons  to  cany  on  a  certain  trade  or  business,  for  which  they 
agree  to  join  either  their  money,  labor,  or  skill,  or  all  of  them, 
and  to  divide  the  gain  or  sustain  the  loss  in  proportion  to  the 
terms  of  copartnership. 

How  should  the  hooks  of  a  copartnership  be  kept  9 

Ans.  As  if  they  belonged  to  one  person  only  ;  but  the  plural 

number  should  be  used,  ive,  us,  and  ours,  instead  of  /,  me,  mine, 

and  the  like. 

When  the  capital  to  he  employed  in  the  concern  is  fixed  upon, 
how  should  it  he  entered  ? 

Ans.  Sundries,  Dr.  to  Stock  (in  Co.)  ;  each  partner  for  his 
share  or  proportion. 

When  these  shares  are  paid  in  ? 

Ans.  Cash,  or  the  article.  Dr.  to  Sundries;  to  each  partner 
for  the  amount  of  his  share. 

Is  one  account  in  general  sufficient  for  each  partner? 
Ans.  Yes :  and  it  should  be  kept  in  the  same  manner  as  that 
of  any  neutral  person. 

What  should  the  partner^s  accounts  exhihit  9 

Ans.  They  should  exhibit  only  the  money  paid,  or  any  other 
articles  taken  from  the  concern  for  private  use,  together  with  the 
interest  on  their  respective  shares. 

How  are  the  partner^s  accounts  closed  ? 

Ans.  The  balance  is  carried  forward  like  any  other  personal 
account,  until  the  profits  be  divided,  or  an  alteration  in  the  shares 
takes  place,  or  the  term  of  the  copartnership  expires ;  previous  to 
any  of  which,  these  accounts  must  be  closed. 


QUERIES    AND    ANSWERS.  77 

When  the  profits  are  to  be  divided  among  the  partners  ? 
Ans.    Enter    Profit    and    Loss,    Dr.    to    each   partner,    for 
his  individual  share. 

When  the  profits  are  to  be  applied  to  increase  the  stock  ? 
Ans.  Profit  and  Loss,  Dr.  to  Stock  (in  Co). 

If  there  has  been  a  loss  on  the  business? 
Ans.  The  above  entries  are  reversed. 

Wlien  an  alteration  in  the  shares  takes  place  ? 
Ans.  The  books  must  be  previously  balanced  and  the  partner's 
accounts  closed. 

What  is  the  stock  to  be  considered? 

Ans.  Stock  in  Co.  is  to  be  considered  as  a  joint  account,  to  be 
divided  at  such  periods  and  in  such  proportions  as  are  directed 
by  the  articles  of  copartnership. 

What  should  the  Stock  Account  exhibit  ? 

Ans.  Stock  Account  should  always  include  the  anaount  or  value 
of  the  company's  effects,  both  real  and  personal. 


CHAPTER  X 


TRANSACTIONS  IN  TRADE JOURNAL  ENTRIES LEDGER. 


For  the  purpose  of  more  clearly  exemplifying  the  nature  of 
the  Journal,  and  the  relation  between  the  terms  Dr.  and  Cr.,  we 
have  given  in  the  present  chapter  a  series  of  mercantile  trans- 
actions, arranged  in  the  order  of  their  respective  dates,  on  the 
left  hand  page ;  and  on  the  right  hand  page,  immediately  opposite, 
each  transaction  is  entered  singly,  in  the  Journal  form.  In 
teaching  the  science  of  Book-keeping,  the  principal  difficulty  with 
the  learner  is  to  obtain  clear  and  comprehensive  ideas  of  Dr.  and 
Cr.,  and  of  the  various  applications  of  these  terms  in  the  Ledger. 
It  must  be  clearly  borne  in  mind  that  the  Journal  is  simply  a 
preparatory  book  ;  the  main  design  of  which  is  to  facilitate  the 
posting  and  balancing  of  the  Ledger. 

All  who  have  given  attention  to  any  particular  art  or  science, 
are  aware  that  there  are  certain  elementary  principles,  the 
knowledge  of  which  must  be  thoroughly  acquired,  before  a  pro- 
ficiency can  be  attained  ;  and  unless  this  be  done,  the  acquirement 
must  necessarily  be  superficial  and  imperfect.  This  remark  is 
applicable  not  only  to  the  study  of  Book-keeping,  but  to  the  whole 
circle  of  the  sciences.  It  is  indispensably  necessary  that  the 
abstract  principle  of  Double  Entry  should  be  clearly  understood 
before  the  learner  is  embarrassed  with  the  forms  and  details  of 
the  Subsidiary  Books,  or  with  Monthly  Journalizing.  Experience 
has  abundantly  proved  that  the  arrangement  here  adopted  is 
highly  conducive  to  the  student's  progress,  and  has  the  effect  of 
rendering  plain  and  simple  that  which  would  otherwise  be  con- 
fused and  complicated. 


REMARKS    ON    TEACHING.  79 

We  have  endeavored  so  to  simplify  the  subject,  that  instructors 
who  have  not  previously  given  their  attention  to  this  important 
branch  of  education,  may  be  enabled  to  teach  their  pupils  the 
rationale  of  the  science,  and  to  lead  them  step  by  step  to  a  perfect 
understanding  of  the  principles  and  practice  of  Book-keeping. 
Rules  should  never  usurp  the  place  of  reasons,  and  particular 
forms  should  not  be  confounded  with  general  principles. 

The  following  exercises,  introdvciory  to  Sets  I.  and  II.,  are 
intended  to  initiate  the  learner  into  the  process  of  Journalizing. 
The  transactions  are  mostly  of  a  simple  nature,  which,  with  the 
assistance  of  the  rules  in  Chapter  V.,  it  is  presumed  will  be  readily 
comprehended  by  the  merest  tyro.  In  these  preliminary  exercises 
each  transaction  is  journalized  singly  ;  as  affording  the  most 
obvious  and  simple  illustration  of  the  nature  and  application  of 
Dr.  and  Cr.  But  this  method,  however  excellent  as  an  initiatory 
process,  is  by  no  means  recommended  in  real  business;  inasmuch, 
as  instead  of  one  entry  monthly  being  sufficient  at  each  account^ 
forty  or  fifty  might  be  necessary  ;  and,  to  say  nothing  of  the  labor 
and  loss  of  time  in  so  doing,  the  liability  to  errors  is  always  in 
proportion  to  the  number  of  entries,  and  vice  versa.  If  a  hundred 
sums  are  transferred  to  the  Ledger  when  one  would  answer,  then 
a  hundred  chances  of  error  are  incurred  where  only  one  was 
necessary  ;  and,  in  the  event  of  any  error,  a  hundred  entries  must 
be  examined  instead  of  one  !     See  remarks,  page  41. 

It  may  facilitate  the  process  of  Journalizing  to  state  that  in 
every  account  there  must  be  a  Dr.  and  Cr.  side  ;  and  although 
the  word  Cr.  is  never  expressed  in  the  Journal,  it  is  always 
understood  to  follow  the  word  To.  Thus,  if  the  Journal  entry 
is  "  Cash,  Dr.  to  Merchandise,''''  the  meaning  is  that  Cash 
Account  in  the  Ledger  is  to  be  debited  for  the  sum  ;  and  Mer- 
chandise Account  is  to  be  credited  for  the  like  sum.  The 
creditor  may  be  also  known  by  reversing  the  statement ;  for  if 
Cash  he  Dr.  to  Merchandise,  then  is  Merchandise  Cr.  by  Cash. 

By  Debiting,  is  meant  any  sum  entered  on  the  Dr.  or  left  hand 
side  of  the  Ledger  ;  and, — 

By  Crediting,  is  meant  any  sum  entered  on  the  Cr.  or  right 
hand  side  of  the  Ledger. 


80 


TRANSACTIONS    IN    TRADE. 


New  York,  January  1,  1836. 


Cash  in  hand  on  commencing  business  this  day,  which 
constitutes  my  net  capital, 


Paid  for  Store  fixtures,  Stationary,  Blank  Books,  &c.  F 
Petty  Cash  Book, 


Bought  of  Charles  Hammond, 

Goods,  F  Invoice,  amounting  to 


Sold  James  Bruce  &  Co. 

15  pieces  Broadcloth,  amounting  to 


Paid  Cash  for  Sundry  Goods  bought  at  auction  this  day,  ^ 
Bill  Parcels, 


Bought  of  Hone  &  Co.  a  quantity  of  Goods,  for  which  I 
have  given  them  my  acceptance,  payable  m  30  days, 


12 


Paid   Cash  for  Advertising,   Postages,  &c.  r  Petty  Cash 
Book, 


15 


Sold  James  Hill,  as  r  Sales  Book,  sundry  Goods  ;  and 
received  in  settlement  his  note,  at  90  days,  for  the 
amount, 


18 


Sold  for  Cash,  a  quantity  of  Goods,  as  r  Sales  Book, 


19 


Accepted  Charles  Hammond's  draft  in  favor  of  Smith  & 
Co.  payable  90  days  from  date, 


15,000 


325 


8,151 


957 


2,125 


857 


25 


785 


280 


4,000 


00 


38 


25 


12 


75 


75 


18 


50 


31 


00 


JOURNAL    ENTRIES. 


81 


New  York,  January,  1836. 

1 

1 
1 

Cash,  />r.  to  Stock, 

2 
1 

1st,           for  Capital  in  trade, 

15,000 

00 

Charges,  Dr.  to  Cash, 

i 
1 

2 
3 

2d,            for  Store  fixtures,  &c 

325 

38 

Merchandise,  Dr,  to  Charles  Hammond, 

3 
9, 

4tb,           purchased  of  him, 

8,151 

25 

James  Bruce  &  Co.,  Dr.  to  Merchandise, 

2 

1 

6th,           for  15  ps.  Broad-cloth,  ^  B.  P 

957 

12 

Merchandise,  Dr.  to  Cash, 

2 
2 

7th,           bought  at  auction  for  cash, 

2,125 

75 

Merchandise,  Dr.  to  Bills  Payable, 

2 
1 

9th,           for  my  acceptance  to  Hone  &  Co 

857 

75 

Charges,  Dr.  to  Cash, 

1 
2 

2 

12th,         for  advertising,  postages,  &c 

25 

18 

Bills  Receivable,  Dr.  to  Merchandise, 

1 
2 

15th,         for  James  Hill's  note  at  90  days ;  in  full  for 
ffoods  sold  him, 

785 

50 

Cash,  Dr.  to  Merchandise, 

3 
9! 

18th,         for  cash  sales  this  day, 

280 

31 

1 

Charles  Hammond,  Dr.  to  Bills  Payable, 

19th,         accepted  his  draft  at  90  days, 

4,000 

00 

11 


82 


TRANSACTIONS    IN    TRADE. 


New  York,  Januai'y  25,  1S36. 


I  have  drawn  on  J.  Bruce  &  Co.  at  10  days'  sight,  for  the 
amount  due  by  them,  agreeably  to  then-  request,   .     .    . 


28 


Sold  James  Brown  &  Son  a  quantity  of  Goods,  and  re- 
ceived in  payment  as  follows,  viz. 

their  Note,  at  90  days,     .for      ....  600  00 

Cash, for  the  balance,  600  00 


29 


Paid  Charles  Hammond,  ^  receipt. 
Cash,  in  full, 


Sold  James  Bruce  &  Co. 


30 


Paid  for  Advertising,  Postages,  &c.  this  month,  as  ^  Petty 
Cash  Book, 

February  1, 1836. 


Bought  of  Charles  Hammond, 
Goods,  as  F  Bill  Parcels, 


Sold  Goods  this  day  to  the  following  persons,  as  ^  Sales 
Book,  viz.  to — 

James  Peters,     .    .     .     amounting  to 

Rufus  Dean,  ....  "  

Henry  Pope,       ...  "  


Received  in  Cash  the  amount  of  my  draft  on  Bruce  &  Co. 

rc.  B 


957 


12 


1,200 


4,151 


00 


25 


75 


15 


583 


78 


40 


350 
575 

829 

1,755 


957 


12 


JOURNAL    ENTRIES. 

Neavt  York,  January,  1836. 

Bills  Receivable,  Dr.  to  J.  Bruce  &f  Co. 
25th,         for  my  draft  on  them,  at  10  days. 

Sundries,  Dr.  to  Merchandise, 

28th,  sold  J.  Brown  &  Son,  ^  S.  B. 

Bills  Receivable,     .     .     .     .     ^  B.  B.     .     . 
Cash, r  C.  B.     .     . 

Charles  Hammond,  Dr.  to  Cash, 
29th,         paid  him  in  full, 

James  Bruce  &  Co.  Dr.  to  Merchandise, 
30th,         sold  him,  as  ^  Sales  Book,  .    •    . 

Charges,  Dr.  to  Cash, 
30th,         paid  for  Postages,  &c 

February,  1836. 
Merchandise,  Dr.  to  C.  Hammond, 
1st,  purchased  of  him  this  day,      .     . 

Sundries,  Dr.  to  Merchandise, 

4th,  for  Sales  this  day  as  follows : — 

James  Peters,     .     .     .    .    ^  B.  P.     .     .     . 
Rufus  Dean,       ....  »  ... 

Henry  Pope,      ....  "  ... 

Cash,  Dr.  to  Bills  Receivable, 
6th,  for  Bruce  &  Co.'s  acceptance. 


83 


957 


600 
600 


1,200 


4,151 


15 


12 


25 


75 


78 


583 


350 
575 


1,755 


957 


40 


22 

88 
75 

85 


12 


84 


TRANSACTIONS    IN    TRADE. 


New  York,  February  8,  1836. 


Received  the  following  Notes,  payable  30  days  from  the  4th 
iiist.  viz. — 

James  Peters',     .     .     .     ^  Bill  Book, 

Rufus  Dean's,     ...  it  

Henry  Pope's,     ...  //  


10 


Bought  Goods  for  exportation  of  the  following  persons,  as 
^  Invoices,  viz.  of 

Charles  Hammond,     .     .     .     ^  Invoice,     .... 

Buchanan  &  Co "  .... 

James  Finlay  &  Co.  ...  //  .... 


350 
575 

829 

1,755 


387 
78 
51 

517 


11 


Paid  for  Postage,  Cartage,  &c.  F  Petty  Cash  Book, 


25 


15 


Discounted  at  the  Globe  Bank,   Henry   Pope's  note,  due 
March  8. 

Cash  received, 826  20 

Paid  discount, 3  55 


829  75 


Endorsed  to  Charles  Hammond,  J.  Hill's  note,  due  April  15, 


785 


50 


Paid  my  note  in  favor  of  Hone  &  Co.  as  ^  Cash  Book, 


857 


75 


25 


Bought  of  Simpson  &  Co.  sundry  Goods,  as  F  Invoice; 
and  gave  them  in  settlement, — 

My  Note,     .     .    at  60  days,  for  ....     1,000  00 
Cash,      ...    for  the  balance,    .    .    .       800  00 


1,800 


00 


JOURNAL    ENTRIES. 


85 


New  York,  February^  1836. 


Bills  Receivable,  Dr.  to  Sundries, 

8th,  for  Bills  received  this  day,  ^  B.  B. 


To  James  Peters, 
To  Rufus  Dean, 
To  Henry  Pope,  . 


350  22 

575  88 
829  75 

,755  85 


Merchandise,  Dr.  to  Sundries , 

lOth,  for  purchases  this  day. 


3  To  Charles  Hammond, 

4  To  Buchanan  &  Co.     . 
4       To  James  Finlay  &  Co. 


387  97 
78  25 
5175 


517 


97 


Charges,  Dr.  to  Cash, 
11th,         for  Postage,  &c. 


25 


Sundries,  Dr.  to  Bills  Receivable, 

15th,  for  Henry  Pope's  note,  discounted. 

Cash,     ....     net  amount  received. 
Profit  &  Loss,     .     for  the  discount,   .     . 


826 
3 

829 


Charles  Hammond,  Dr.  to  Bills  Receivable, 
15th,         for  J.  Hill's  note,  endorsed  to  the  former. 


785  50 


Bills  Payable,  Dr.  to  Cash, 
15th,         paid  my  note  to  Hone  &  Co. 


Merchandise,  Dr.  to  Sundries, 

25th,  purchased  this  day. 


To  Bills  Payable, 
To  Cash,    .     .     . 


for  my  note,  (a)  60  days, 
for  balance,       .... 


857 


75 


1,000  00 
800  00 


1,800 


00 


86 


TRANSACTIONS    IN    TRADE. 


New  York,  February  28,  1836. 


Sold  James  Bruce  &  Co. 

Sundry  Goods,  ^  Sales  Book, 


Paid  charges  on  shipments,  &c.  as  f'  Petty  Cash  Book, 


March  1,  1836. 


Effected  an  Insurance  with  the  Globe  Insurance  Company, 
on  Goods  shipped  ^  Jane,  for  New  Orleans,  and  gave 
my  note  for  amount  of  Premium  and  Policy,   .... 


Shipped  ^  the  Jane  for  New  Orleans,  on  account  and  risk 
of  J.  Dana  &  Co.  there,  as  w  Invoice  Book  Outward, — 

Sundry  Goods,     .     .     .     amounting  to 

Charges, at  shipping, 

Insurance, as  above, 

Commission,    ....     on  Insurance,      .... 


2  

Insured  with  the  Hope  Insurance  Company  on  account  of 
George  Smith,  New  Orleans,  3,240  00  on  15  Hhds. 
Sugar,  and  20  Bales  Cotton,  consigned  to  me  for  sale 
and  returns,  ^  the  Ann. 

Paid  Premium  and  Policy  in  cash, 77  28 

Commission  on  amount  Insured, 16  20 

3 

Received  James  Bruce  &  Co.'s  acceptance,  payable  in  30 
days,  for 

4 

Paid  charges  on  Produce  consigned  w  the  Ann,  as  f-  Cash 
Book, 

5 ~ 

Sold  James  Peters,  (at  1  month,) 

20  Bales  Cotton,  r  Ann,  F  Sales  Book, 


1,579 


23 


58  97 


27 


14 


975 

31 

27 

5 


84 
42 
14 
52 

92 


93 


220 


896 


48 


75 


27 


75 


JOURNAL    ENTRIES. 


87 


New  York,  February,  1836.                                   4 

3 
2 

2 

1 

5 
2 

4 

2 
2 
5 
5 

4 

1 
5 

2 
~3~ 

5 

1 

3 
5 

James  Bruce  &,  Co.  Dr.  to  Merchandise^ 
28th,         as  ^  Sales  Book, 

1 
1,579 

23 

97 

14 

t 

Charges,  Dr.  to  Cash, 

58 

March,  1836. 
Insurance,  Dr.  to  Bills  Payable, 
1st,           for  my  Note  to  Globe  Insurance  Company,  . 

27 

J.  Dana  &  Co.  Dr.  to  Sundries, 

1st,  for  Invoice  ^  Jane,  for  New  Orleans. 

To  Merchandise, , 

975184 

To  Charo'es, 

31  4Q 

To  Insurance, 

27 
5 

14 
52 

92 

To  Commission,  .•..........•• 

1 
1 

1,039 

George  Smith,  Dr.  to  Sundries, 

2d,  for  Insurance  on  Produce,  ^  Ann. 

To  Cash,      .     .    .    paid  Premium  and  Policy,    .     .     . 
To  Commission,  .    on  amount  insured, 

77 
16 

28 
20 

93 

48 
75 

Bills  Receivable,  Dr.  to  James  Bruce  ^  Co. 
3d,            for  their  acceptance,  at  30  days, 

989 

Consignment  Charges,  Dr.  to  Cash, 
4th,           paid  on  produce,  r  Ann, 

220 

27 

James  Peters,  Dr.  to  Sales  of  Consignments, 
5th,           for  20  Bales  Cotton,  ^  the  Ann, 

896 

75 

88 


TRANSACTIONS    IN    TRADE. 


5  New  York,  March  7,  1836. 

Paid  Buchanan  &  Co. 

Cash  in  full,  as  W  Cash  Book, 

8 

Allowed  to  James  Bruce  &  Co.  a  discount  of  2  ^  cent  on 
1,579  00  for  Goods  damaged, 

12 

Rendered  an  Account  Sales  of  George  Smith's  20  Bales 

Cotton,  W  the  Ann,  as  F  S.  B.,  and 
Charged,  ....     for  freight  and  other  expenses,    .     .     . 

Commission,      .     .     on  sales, 

George  Smith,  .     .     net  proceeds, 


15 


I  have  drawn  on  J.  Dana  &  Co.  for  the  amount  of  shipment 
made  to  them,  at  90  days,  in  favor  of  Holmes  &  Son, 
in  conformity  to  J.  D.  &  Co.'s  letter  of  advice,     .     .     . 


17 


Effected  with  the  Globe  Insurance  Company,  an  insurance 
on  2,800  00  on  Goods  ^  the  Nero,  for  Jamaica.  Paid 
Premium  and  Policy  in  cash, 


18 


Paid  sundry  charges  on  shipments,  &c.  as  W  Cash  Book, 


19 

Shipped  F  the  Nero  for  Jamaica,  on  account  of  George 
Smith,  New  Orleans,  and  consigned  by  his  order  to 
William  James,  there,  as  F  Book  of  Shipments, — 

Sundry  Goods,     .     .     amounting  to 

Charges,      ....     at  shipping, 

Insurance,  ....     on  2,800  00, 

Commission,    ...     on  Goods,  Charges,  and  Insurance,   . 

21 

Sold  Buchanan  &  Co.  (at  2  months,) 

15  Hhds.  Sugar,  consigned  r  Ann,  as  r  S.  B 


78 


31 


85 

35 

775 


896 


1,039 


61 


85 


2,550 
75 
61 
72 


2,759 


3,360 


25 


58 


92 


34 


39 


25 


JOURNAL    ENTRIES. 


89 


New  York,  March,  1836. 

5 

4 
1 

Buchanan  &  Co.  Dr.  to  Cash, 

1 
8 

7th,           paid  them  m  full, ,    i    . 

78 

25 

Profit  &  Loss,  Dr.  to  James  Bruce  ^  Co, 

5 

8th,           for  discount  allowed  them, 

31 

58 

Sales  of  Consignments,  Dr.  to  SundrieSj 

12th,  for  proceeds,  &c.  of  20  bales  Cotton,  ^  Ann,  as  ^  Sales  Book. 

5 
5 
4 

2 

4 

To  Consignment  Charges,     .     .     freight,  &c.      ,     ,     . 

To  Commission,      .....     on  sales, 

To  George  Smith, net  proceeds,    .     ,     , 

85 

35 

775 

30 

87 

58 

896 

75 

Bills  Receivable,  Dr.  to  J.  Dana  Sf  Co, 

5 
1 

15th,         for  amount  of  my  draft  on  them  in  favor  of 
Holmes  &  Son, 

1,039 

92 

Insurance,  Dr.  to  Cash, 

2 
1 

17th,         paid  Premium  and  Policy,  on  Goods  ^  the 
Nero, 

61 

34 

Charges,  Dr.  to  Cash, 

1 

4 

18th,         paid  sundry  charges  on  shipments,   .... 

85 

39 

George  Smith,  Dr.  to  Sundiies, 

19th,  for  Goods  ^  the  Nero  for  Jamaica,  ^  order,  as  ^  B.  S. 

2 
2 
5 
5 

4 
5 

To  Merchandise,     .     .     .     for  amount, 

To  Charges, at  shipping, 

To  Insurance,     ....     Premium  and  Policy,     .     . 
To  Commission,     ...     on  Goods,  Charges,  &c.     . 

2,550 
75 
61 
72 

30 
37 
34 

87 

88 

2,759 

Buchanan  &  Co.  Dr.  to  Sales  of  Consignments, 

i 

21st,           for  15  hhds.  Sugar,  w  Ann, 

3,360  25 

12 


90 


TRANSACTIONS    IN    TRADE. 


6                                  New  York,  March  25,  1836. 

Paid  my  note  in  favor  of  the  Globe  Insurance  Company,     . 

27 

51 
45 

180 

134 

3,045 

14 

75 

78 

75 
41 

09 

Paid  J.  Finlay  &  Co. 

Cash  in  full  ?^  C.  B 

Paid  sundry  charges  on  consignment  ^  the  Ann, 

1 

Made  up  the  Account  Sales  of  George  Smith's 
Sugar,  consigned  ^  the  Ann,  as  ^  S.  B.,  and 
Charged,     ....     for  freight,  &c.     . 
Commission,    ...     on  sales, 

15  hhds. 

George  Smith,     .    .    net  proceeds, 

?1 

3,360 
450 

25 

00 

Paid  the  following  expenses,  in  cash : — 

Store  Rent, 

300  00 
150  00 

Clerk's  Salary, 

;;                                                                               1 

The  Goods  on  hand,  estimated  at  present  value,  amount,  as 
r  Inventory,  to  5,786  00. 

JOURNAL    ENTRIES. 


91 


New  York,  March,  1836.                                    6 

1 

2 

1 

4 
1 

5 

1 

5 

1 

4 

2 

1 

Bills  Payable,  Dr.  to  Cash, 
25th,         paid  note  favor  Globe  Insurance  Company,  . 

27 

14 

J.  FiNLAY  &  Co.  Dr,  to  Cash, 
25th,         paid  them  in  full, 

51 

75 

Consignment  Charges,  Dr.  to  Cash, 
25th          on  produce,  ^  Ann, 

45 

78 

Sales  of  Consignments,  Dr.  to  Sundries, 

25th,  for  proceeds,  &c.  of  15  hhds.  Sugar,  ^  the  Ann,  as  f-  S.  B. 

To  Consignment  Charges,     .     freight,  &c 

To  Commission, on  sales, 

To  George  Smith,    ....     net  proceeds,  .... 

180 

134 

3,045 

1 

75 
41 

09 

3,360 

25 

Charges,  Dr.  to  Cash, 
31st,          paid  rent  and  clerk's  salary, 

450 

00 

LEDGER . — Introductory  Set. 


INDEX. 


B 

Bills  Receivable, 2 

Bills  Payable, 2 

Bruce,  James  &  Co 3 

Buchanan  &  Co 4 

Balance, 6 

C 

Cash, 1 

Charges, 2 

Commission, 5 

Consignment  Charges,     ...  5 

D 

Dean,  Rufus 3 

Dana,  J.  &  Co 4 

F 

Finlay,  J.  &  Co 4 


H 

Hammond,  Charles     ....    3 

I 
Insurance, 5 

M 
Merchandise, 2 

P 

Profit  and  Loss, 1 

Pope,  Henry 4 

Peters,  James 3 

S 

Stock, 1 

Smith,  George 4 

Sales  Consignments,    ....  5 


LEDGER — INTRODUCTORY    SET. 


95 


1 

Dr.                                           Stock.                                            Cr. 

1836 
Mar.    31 

To  Balance^"     .    .    . 

17,191 

36 
36 

1836 
Jan.       1 
Mar.    31 

By  Stock, 

By  Profit  ^  Loss,  net 
gain, 

1     15,000  00 
2,191  36 

17,191 

17,191  36 

•  All  the  closing  entries 
are  printed  in  Italics. 

Dr.                                Profit  and  Loss.                                 Cr. 

1836 

Feb.    15 

Mar.      8 

,/       31 

//        // 

To  Bills  Receivable,  . 
To  J.  Bruce  &  Co. .    . 
To  Charges,  .... 
To  Stock,  net  gain,   . 

3 

5 

3 

31 

862 

2,191 

55 
58 
16 
36 

1836 

Mar.    31 

//       // 

By  Merchandise,     .    . 
By  Commission, .    .     . 

2,823  78 
264  87 

3.088 

65 

3,088  65 

Dr.                                          Cash.                                            Cr. 

1836 
Jan.       1 

//       18 

„       28 
Feb.      6 

//       15 

To  Stock, 

To  Merchandise,    .    . 
To  Merchandise,     .    . 
To  Bills  Receivable,  . 
To  Bills  Receivable,  . 

1 
1 
2 
2 
3 

i 

15,000 
280 
600 
957 
826 

00 
31 
00 
12 
20 

63 

1836 

Jan.       2 
f/         7 
ft       12 
t,       29 
ft       30 

Feb.     11 
//       15 
//       28 

Mar.     '2 
//         4 
//         7 
//       17 
„       18 
//       25 
//       // 

»       31 
//       // 

By  Charges 

By  Merchandise,     .     .      1 
By  Charges,  .     .     .     .      1 
By  C.  Hammond,    .     .      S 
By  Charges,  .     .     .     .      S 
By  Charges,  .     .     .     .      C 
By  Bills  Payable,   .     .      Z 
By  Merchandise,    .     .      S 

By  Charges 4 

By  George  Smith,  .     .      4 

By  Cash, 4 

By  Buchanan  &  Co.    .      5 
By  Insurance,    ...      5 

By  Charges 5 

By  Bills  Payable,  .     .      6 
By  J  Finlay  &  Co.      .      6 
By  Consignra't  charges      ( 
By  Charges,  ....      6 
By  Balance,  .... 

325  38 

2,125  75 

25  18 

4,151  -25 

15  78 

825 

857  75 

800  00 

58  97 

77  28 
220  27 

78  25 
61  34 
85  39 
27  14 
5175 
45  78 

450  00 
8,198  12 

17,663 

17,663  63 

96 


LEDGER — INTRODUCTORY    SET. 


Dr. 


Charges. 


Cr. 


1836 

Jan.       2 

12 

30 

Feb.     11 

//       28 

Mar.    18 

31 


To  Cash, 
To  Cash, 
To  Cash, 
To  Cash, 
To  Cash, 
To  Cash, 
To  Cash, 


1 
1 

2 
3 
4 
5 
6 

325 
25 
15 

8 

58 

85 

450 

38 
18 
78 
25 
97 
39 
00 
— 
95 

1836 

Mar.   1 

//   19 

n        31 

968 

By  J.  Dana  &  Co.  . 
By  George  Smith,  . 
By  Profit  and  Loss, 


31 

75 

862 


968  95 


Dr, 


Bills  Receivable. 


Cr. 


1836 
Jan.  15 
25 
28 
Feb.  8 
Mar.  3 
15 


To  Merchandise, 
To  J.  Bruce  &  Co. 
To  Merchandise, 
To  Sundries,  .    . 
To  J.  Bruce  &  Co. 
To  J.  Dana  &  Co. 


785  50 
957  12 
600  00 

1,755  85 
989  75 

1,039 1 9-2 


6,128  14 


1636 

Feb.      6 

n       15 

Mar.    31 


By  Cash, 

By  Sundries,  .... 
By  Charles  Hammond, 
By  Balance,  .... 


957 

829 

785 

3,555 


6,128 


77 


Dr. 


Bills  Payable. 


Cr. 


1836     I 
Feb.    15    To  Cash,  . 
Mar.    25 1  To  Cash,  . 
31     To  Balance. 


857 

27 

5,000 


5,884 


1836 

Jan.       9 

//       19 

Feb.    25 

Mar.      1 


By  Merchandise, 
By  C.  Hammond, 
By  Mercliandise, 
By  Insurance,    . 


857 

4,000 

1,000 

27 


5,884 


Dr. 


Merchandise. 


Cr. 


1836     I 
Jan.      4 
7 
9 

Feb.  1 
10 
25 
Mar.    31 


To  C.  Hammond, 
To  Cash,  .  .  . 
To  Bills  Payable, 
To  C.  Hammond, 
To  Sundries, 
To  Sundries, 
To  Profit  and  Loss. 


8,151 
2,li>5 

857 

583 

517 

1,800 

2,823 


16.859  90 


1836 
Jan. 


Feb. 
Mar. 


By  James  Bruce  &  Co 
By  Bills  Receivable, 
By  Cash,  .... 
By  Sundries,      .     . 
By  J.  Bruce  &  Co. 
By  Sundries,       .     .     , 
By  J.  Bruce  &  Co  . 
By  J.  Dana  &  Co.  . 
By  George  Smith,  . 
By  Balance,  .    .    . 


957 

785 

280 
1,?00 

989 
1,755 
1,579 

975 
2  550 
5,786 


16,859 


LEDGER — INTRODUCTORY    SET, 


97 


3 
Dr,                               Charles  Hammond.                                Cr. 

1836 
Jan.     19 

//       29 
Feb.    1.5 
Mar.    31 

To  Bills  Payable,  .     . 

To  Cash, 

To  Bills  Receivable,  . 
To  Balance,.    .     .    . 

1, 
2 
3 

4,000 

4,151 

785 

185 

00 
25 

50 

87 

62 

1836 

Jan.       4 

Feb.       1 

//       10 

By  Merchandise,    .     . 
By          do.             .     . 
By          do.             .    . 

I 

3 

815125 
583  40 
387  97 

9.122  62 

9,1-22 

1 

1 

Dr.                              James  Bruce  &  Co.                               Cr. 

1836 

Jan.       6 

//       30 

Feb.    28 

To  Merchandise,    .     . 
To          do.             .    . 
To          do.             .     . 

] 
2 
4 

957 

989 

1,579 

12 

7.5 
23 

1836 
Jan.     25 
Mar.      3 

//         8 

By  Bills  Receivable,  . 
By             do. 
By  Profit  and  Loss,     . 
By  Balance,      .    .     . 

2 
4 
5 

957 

989 

31 

1,547 

12 
75 
.58 
65 

1» 

3,526 

3,526 

Dr.                                    James  Peters.                                     Cr. 

1836 
Feb.      4 
Mar.     5 

To  Merchandise,    .     . 
To  Sales  Coosignm'ta, 

2 
4 

350 
896 

22 
75 

97 

1836 
Feb.      8 
Mar.    31 

By  Bills  Receivable,  . 
By  Balance,      .    .    . 

3 

1 

350 

896 

2> 

75 

97 

1,246 

1,246 

Dr.                                    RuFUS  Dean.                                     Cr. 

1836 
Feb.      4 

To  Merchandise^   .    . 

1 
2 

575 

88 

1836 
Feb.      8 

By  BilU  Receivable,  . 

3 

575 

88 

13 


98 


LEDGER — INTRODDCTORY    SET. 


4 

Dr.                                    Henry  Pope.                                      Cr. 

1836 
Feb.      4 

To  Merchandise,    .    . 

2 

829 

75 

1836 
Feb.      8 

By  Bills  Receivable,  . 

3 

8^ 

75 

Dr.                                 Buchanan  &  Co.                                  Cr. 

1 

1836 

Mar.      7 

//       21 

To  Cash 

To  Sales  Consignm'ts, 

5 
5 

78195 
3,360 1 25 

3.438;  50 

183G 
Feb.    10 
Mar.    31 

By  Merchandise,     .     . 
By  Balance^ .... 

3 

78 
3,360 

25 
25 

5? 

3,438 

Dr.                             James  Finlay  &  Co.                               Cr. 

laat) 
Mar.    25 

To  Cash, 

6 

1    . 

75 

laati 

Feb.    10 

By  Merchandise,    .    . 

3 

51 

75 

Dr.                                  George 

Smith.                                    Cr. 

1836 

Mar.      1 

//       19 

n      31 

To  Sundries,      .    .    . 
To       do.           .    .     . 
To  Balance^      .    .    . 

4 
5 

93 

2,7.59 

967 

48 
88 
31 

67 

1836 

Mar.   12 

//      25 

By  Sales  Consignm'ts, 
By             do. 

5 
6 

775 
3,045 

58 
09 

67 

3,820 

3,820 

Dr.                                 J.  Dana  &  Co.                                   Cr. 

1836 
Mar.     1 

To  Sundries,      .    .    . 

4 

1,039 

92 

1836 
Mar.    15 

By  Bills  Receivable,  . 

5 

1,039 

n 

LEDGER — INTRODUCTORY    SET. 


99 


5 
Dr,                                       Insurance.                                        Cr. 

1  36 

Mar.      1 

n       17 

To  Bills  Payable,  .    . 
To  Cash, 

4! 

5 

27 
61 

14 

34 

48 

1       836 
Mar.      1 
n       19 

By  J.  Dana  &.  Co.       . 
By  George  Smith,  .     . 

4| 
5 

27  14 
61  34 

88 

88  48 

1 

Dr.                                      Commission.                                       Cr. 

1836 
Mar.    31 

To  Profit  and  Loss,    . 

1 

264 

87 

1836 
Mar.      1 
t,        2 
f,       12 
,f       19 
//       25 

By  J.  Dana  &  Co.  .     . 
By  George  Smith,  .     . 
By  Sales  Consignm'ts, 
By  George  Smith,  .     . 
By  Sales  Consignm'ts, 

4 
4 
5 
5 
6 

5','>2 

16  20 

35  87 

72;  87 

134 1 41 

264 

87 

264  87 

Dr.                           Consignment  Charges.                            Cr. 

1836 
Mar.     4 

n       25 

To  Cash, 

t 

220 
45 

05 

1836 
Mar.    12 

n       25 

By  Sales  Consignm'ts, 
By  Sales  Consignm'ts, 

5 
6 

P5  .30 

180  75 

To  Cash, 

266 

266  05 

Dr.                          Sales  of  Consignments.                          Cr. 

1836 

Mar.    12 

n       25 

To  Sundries,      .     .     . 
To  Sundries,      .    .     . 

5 

6, 

896 
3360 

75! 

-! 

00 

1 

1836 

Mar.     5 

//       21 

By  James  Peters,   .     . 
By  Buchanan  &  Co.    . 

4! 
5 

896  75 
3,360  25 

4,257 

4.257  00 

100 


TRIAL    BALANCE. 


Dr, 


Balance. 


Cr. 


Mar.   31 


—  Effects.  — 

To  Cash, 

To  Bills  Receivable,  . 
To  Merchandise,  .  . 
To  James  Bruce  &  Co. 
To  James  Peters,  .  . 
To  Buchanan  &,  Co.   . 


1836 
Mar.    31 


—  Debts.  — 

By  Bills  Payable,  .  . 
By  C.  Hammond,  .  . 
By  George  Smith,  .    . 

Am't  of  my  debts,  .  . 
By  Stocky  net  Capital, 


5,000 
185  87 


6,153 
17,191 


23,344 


EXPLANATION. 

Cash. — The  balance  of  this  account,  being  the  cash  on  hand,  is  part  of 
your  effects,  and  is,  therefore,  entered  on  the  Dr.  side  of  Balance. 

BUls  Receivable. — The  balance  of  this  account,  being  the  Bills  in  hand, 
is  also  part  of  your  effects,  and  is  entered  as  before. 

Bills  Payable. — The  balance  of  this  account,  being  the  amount  you  oioe 
in  accepted  Bills,  is  part  of  your  debts,  and  is,  therefore,  entered  on  the 
Cr.  side  of  Balance. 

Merchandise. — The  balance  of  this  account  is  the  amount  of  goods 
unsold,  and  is  ascertained  in  real  business,  by  taking  an  Inventory.  The 
difference  between  the  Dr.  and  Cr.  side,  tohen  the  balance  on  hand  is  added 
to  the  amount  sold,  is  the  gain  or  loss ;  and  is  transferred  to  the  proper  side 
of  Profit  and  Loss  Account. 

The  Personal  Accounts  being  debited  for  debts  due  to  you,  and  credited 
for  the  reverse,  the  differences  of  these  accounts  are  consequently  either 
your  effects  or  debts,  and  are  entered  in  the  Balance  Account  accordingly. 


TRIAL  BALANCE. 


Folio. 


March  31, 1836. 


Dr. 

Cr. 

15,000 

00 

17,663:63 

9,465 

51 

35 

13 

968 

95 

106 

79 

6,128 

14 

2,572 

37 

884 

89 

5,884 

89 

14,036 

12 

11,073 

90 

8,936 

75 

9,122 

62 

3,526 

10 

1,978 

45 

1,246 

97 

350  ;22 

3,438 

50 

78,25 

2,853 

36 

3,820;67 

264 

87 

59,718 

54 

59,718 

54 

Stock,    .     .    .    ,     , 
Cash,      .     .     .     .     . 
Profit  and  Loss,  . 
Charges,     .     .     .     . 
BilJs  Receivable, 
Bills  Payable,      .     , 
Merchandise,  .     . 
Charles  Hammond, 
James  Bruce  &  Co. 
James  Peters, 
Buchanan  &  Co. 
George  Smith,     . 
Commission,   .    . 


CHAPTER  XI. 

EXPLANATORY  NOTES  AND  OBSERVATIONS. 

In  the  study  of  Book-keeping,  there  is  at  the  outset,  a  difficulty 
which,  to  the  inexperienced  and  undisciplined  tyro,  renders  it  dry 
and  uninteresting  ;  namely,  that  of  perceiving  to  what  ultimate 
end  the  rules  presented  for  his  government  in  recording  the 
various  transactions,  lead  ;  so  that  he  will  often  have  to  work  his 
way  patiently  through  the  system  in  the  practical  application  of 
those  rules,  before  he  can  clearly  understand  the  reasons — the 
why  and  wherefore  of  all  that  he  does.  The  same  difficulty 
exists,  more  or  less,  in  the  acquisition  of  all  abstract  sciences. 
In  the  present  Chapter,  we  shall  endeavor  to  illustrate  the  prin- 
ciples upon  which  the  rules  for  Journalizing  depend,  and  the 
nature  of  the  accounts  in  the  Ledger,  in  such  a  manner  as  to 
afford  a  simple  and  comprehensive  view  of  the  subject. 

It  has  been  shown  in  the  preceding  pages,  that  when  books  are 
kept  by  Double  Entry,  the  merchant  or  proprietor,  opens  accounts, 
not  only  for  the  persons  with  whom  he  transacts  business,  but, 
also,  for  the  articles  or  objects,  in  which  he  deals.  In  the  man- 
agement of  Personal  Accounts  ;  in  other  words,  in  the  application 
of  Br.  and  Or.  to  them,  no  difficulty  is  experienced  ;  but  why 
the  "  thing  received  should  be  made  Dr.  to  the  thing  delivered," 
is  not  so  obvious  to  a  learner.  The  reason  for  this  rule  will  be 
apparent,  however,  when  it  is  considered  that  some  of  the  accounts 
in  the  Ledger  represent  the  merchant  himself,  so  as  to  render  it 
unnecessary  to  open  any  account  bearing  his  proper  name.  These 
are,  first,  the  accounts  of  property  ;  comprehending  Cash,  Bills 
Receivable,  Merchandise,  Ships,  Houses,  Lands,  Bank  Stocks, 
^c. ;  and  secondly,  the  accounts  of  his  gains  and  losses. 


102  EXPLANATORY  NOTES 

When,  in  the  technical  language  of  Book-keeping,  any  one  of 
these  is  debited  or  credited,  it  is,  in  fact,  the  merchant  himself 
who  is  debited  or  credited  :  thus,  if  I  purchase  goods  of  Charles 
Hammond  upon  credit,  I  do  not  say  in  my  books,  I  owe  Charles 
Hammond  for  goods  bought  of  him;  1  say,  Merchandise,  Dr, 
to  Charles  Hammond.  If  I  pay  money  to  C.  Hammond,  I  do 
not  say,  C.  Hammond  owes  me  for  cash  paid,  but,  C.  Hammond, 
jDr.  to  Cash.  It  is  evident  that  as  to  setting  the  parties  to  these 
transactions  in  their  proper  places  in  reference  to  Dr.  and  Cr.j 
when  I  say,  in  the  one  case.  Merchandise,  Dr.  to  Charles 
Hammond,  and,  in  the  other,  C.  Hammond,  Dr.  to  Cash,  it  is 
equivalent  to  saying,  I  owe  Charles  Hammond  for  merchandise, 
and  C.  Hammond  owes  me  for  cash.  We  proceed  to  a  more 
particular  explanation  of  these  accounts  : — 

I.  Cash. — On  reference  to  the  Ledger,  it  will  be  perceived 
that  the  Dr.  side  of  Cash  exhibits  a  statement  of  all  monies 
received,  and  the  Cr.  side  all  monies  paid.  What,  it  may  be 
asked,  is  the  rule  for  making  this  account  Dr.  in  some  cases,  and 
Cr.  in  others  ?  The  rule  is  simple  and  uniform.  For  all  sums 
received,  cash  is  made  debtor,  and  the  parties  paying  the  same  are 
made  creditors;  while  for  all  sums  paid,  cash  is  credited,  and  the 
parties  receiving  the  same  are  debited. 

Let  us  suppose  for  illustration,  that  I  employ  a  cashier.  It  is 
plain  that  he  ought  to  be  debited  for  the  money  intrusted  to  his 
care,  and  credited  when  it  is  withdrawn  from  him.  We  have 
only  further  to  suppose  that  I  keep  an  account  with  my  cash 
deposite,  under  the  title  of  "  CasA,"  which  I  debit  and  credit  as  I 
should  that  of  my  cash-keeper,  and  the  reason  for  the  rule  will 
be  obvious. 

It  will  also  be  clear  that  when  "  Cash  "  is  debited,  the  merchant 
himself  is,  in  reality,  debited  ;  and  when  this  account  is  credited, 
the  merchant  is  credited.  For  example,  if  I  receive,  in  cash, 
from  Brown  U  Co.  $1,000,  my  Journal  entry  will  be  Cash, 
Dr.  to  Brown  ^  Co.  Now,  since  I  am  the  only  person  respon- 
sible in  this  transaction,  the  above  entry  simply  declares  me  to  be 
liable  to  Brown  &i  Co.  for  |1,000;  while  it  shows  that  my  cash 
deposite  owes  me  so  much.  Again,  I  purchase  for  cash  a  quantity 
of  flour  amounting  to  $500.  In  this  case,  my  Journal  entry  will 
be   Merchandise,  Dr,  to    Cash,   $500, — that   is,  I  debit   the 


AND  OBSERVATIONS.  103 

account  entitled  Merchandise,  for  the  cost  of  the  flour ;  to  pay 
which  I  have  withdrawn  from  my  cash  deposite  $500  ;  and  for 
this  sum  I  must  credit  "  Cash.^^  Hence  this  entry  does  not  record 
a  debt,  but  simply  a  change  which  has  taken  place  in  the  name  of 
my  property ;  namely,  the  increase  of  Merchandise,  and  the 
decrease  of  Cash, 

2.  Merchandise. — In  order  to  obtain  a  clear  idea  of  the  nature 
of  this  account,  we  have  only  to  suppose  that  the  merchant  per- 
sonifies his  warehouse,  and  keeps  an  account  with  it,  under  the 
general  title  of  ^'■Merchandise;"  to  the  Dr.  side  of  which  he 
transfers  the  cost  of  all  goods  purchased  or  rec^ved,  and  to  the 
Cr.  side  the  amount  of  all  such  goods  sold  or  delivered ;  and  any 
returns  arising  from  them  ;  and  we  shall  readily  understand  the 
principle  upon  which  the  purchases  and  sales  of  goods  are  re- 
corded. To  illustrate  this,  we  will  refer  to  the  transactions  at 
page  80.  On  the  4th  of  January,  a  quantity  of  goods  is  supposed 
to  have  been  purchased  of  Charles  Hammond  on  credit,  amounting 
to  $8,151  25.  In  conformity  to  the  rule,  the  Journal  entry  is, 
Merchandise,  Dr.  to  Charles  Hammond,  for  the  value.  Now, 
it  is  not  intended  by  this  statement  that  Merchandise  is  responsible 
to  Hammond  ;  but  that  the  merchant  or  purchaser  is  liable  to 
him  ;  and  that  for  this  liability,  value  in  goods  has  been  received 
into  his  w^arehouse.  Again,  at  the  same  page,  15  pieces  of 
broad-cloth  are  supposed  to  have  been  sold  to  James  Bruce  &  Co. 
The  Journal  entry  is,  James  Bruce  &i  Co.,  Dr.  to  Merchandise. 
This  is  not  meant  to  imply  that  Merchandise  can  have  any  claim 
against  Bruce  &i  Co.,  but  that  the  merchant  himself  has  a  claim 
upon  them,  and  also  that  a  certain  amount  of  merchandise  has 
been  delivered  from  his  store  or  warehouse. 

The  accounts  which  are  opened  for  any  other  kind  of  property, 
as  Real  Estate,  Ships,  Bank  Stocks,  and  the  hke,  are  analogous 
to  that  of  Merchandise,  being  debited  for  the  original  cost  and  all 
charges,  and  credited  for  the  returns,  such  as  rents,  freights,  &c. 

3.  Bills  Receivable. — Under  this  title  in  the  Ledger,  the 
merchant  enters  all  written  obligations  by  which  he  is  entitled  to 
receive  money  from  others,  such  as  Promissory  Notes,  Drafts, 
Bills  of  Exchange,  Bonds,  &;c.  This  account  is  debited  for  all 
Bills  which  come  into  his  possession,  and  credhed  when  they  are 
retired  or  otherwise  disposed  of. 


104  EXPLANATORY  OBSERVATIONS. 

4.  Bills  Payable. — Under  this  title  the  merchant  enters  all 
obligations  in  writing, — as  Promissory  Notes,  Accepted  Bills  or 
Drafts,  &;c.,  by  which  he  binds  himself  io  pay  money  to  others. 
This  account,  although  classed  by  the  majority  of  writers  on 
Book-keeping  among  the  accounts  o(  Property,  is  nothing  more 
or  less,  in  principle,  than  a  Personal  Account.  Let  us  take,  for 
illustration,  the  transactions  of  the  4th  and  19lh  of  January,  (page 
80.)  The  first  renders  me  responsible  to  Charles  Hammond  for 
$8,151  25,  the  second  makes  me  liable  for  the  same  debt  to  the 
holder  of  Hammond's  draft,  which  I  have  accepted,  and  thereby 
bound  myself  to  pay  when  due.  Now  as  this  is  merely  a  transfer 
of  the  debt  from  Hammond,  with  whom  it  was  originally  con- 
tracted, to  the  holder  of  my  acceptance,  I  debit  the  former  in  the 
account  bearing  his  name,  and  credit  the  latter  in  a  general 
account  which  I  open  for  all  such  debts  or  obligations,  and  to 
which  I  give  the  title  '  Bills  Payable.^  This  account  is  managed 
precisely  like  any  Personal  Account;  namely,  it  is  credited  for  ail 
liabilities  in  the  shape  of  Notes,  Acceptances,  Bonds,  &:c.,  which 
the  merchant  grants,  and  debited  for  such  of  these  as  he  pays  or 
retires  from  circulation.  It  need  scarcely  be  observed  that  nothing 
can  be  entered  to  the  debit  of  '  Bills  Payable,'  except  what  has 
first  been  placed  to  the  credit  of  this  account ;  for  before  a  bill 
can  be  redeemed,  it  must  have  been  issued. 

In  opening  an  account  for  any  species  of  property,  the  name  or 
title  is  in  the  first  instance  perfectly  arbitrary ;  but  when  a  title  is 
once  selected,  all  subsequent  entries  which  relate  to  the  same 
object,  must  be  made  in  accordance  with  the  original  entry.  For 
instance,  suppose  I  purchase  500  barrels  of  flour,  I  may  place 
the  cost  or  value  to  the  debit  of  the  general  account  of  '  Mer- 
chandise ' ;  or  open  a  particular  account  for  this  article  alone, 
under  the  title  of  *  Flour ' ;  but  when  I  dispose  of  this  flour,  I  am 
not  at  liberty  to  credit,  at  pleasure,  either  of  these  accounts  for  the 
returns, — I  must  credit  the  one  originally  charged. 

In  transferring  the  accounts  to  a  new  Ledger,  or  in  opening  a 
new  set  of  Books,  it  is  proper  to  close  the  old  Books  and  make  a 
General  Balance ;  when  the  items  which  compose  the  '  Balance 
Account '  will  furnish  materials  for  the  Inventory,  or  statement  of 
the  assets  and  debts  of  the  house. 


lijftai  b  'in  ean:  sjitliflxo  Jat  su 

SET    I. 
RETAILER'S    BOOKS. 


Concern, Individual, 

Capital, Variable. 

Business, Commenced. 

Result, Profitable. 


14 


OBSERVATIONS. 

This  set  exhibits  the  business  of  a  retail  dealer  for  three 
months.  The  concern  is  supposed  to  commence  on  the  first  of 
January,  1836,  without  any  prior  stock  of  goods  or  debts  ;  so  that 
there  is  no  inventory  at  this  date,  and  the  books  are  opened  by 
debiting  Cash  to  Stock  for  the  money  in  hand,  which  constitutes 
the  capital  brought  into  trade. 

It  is  a  common  prejudice,  that  from  the  nature  of  his  business, 
the  retailer  is  unable  to  keep  his  books  by  Double  Entry,  or  in 
the  same  systematic  manner  as  those  of  the  wholesale  dealer^or 
merchant.  The  difficulty,  however,  applies  solely  to  the  quantities 
of  goods,  and  in  no  respect  to  the  accounts,  which  are,  in  all  kinds 
of  business,  composed  of  expenditure  and  returns,  receipts  and 
payments.  These  particulars  the  retailer  can  ascertain  as  easily 
as  the  merchant,  and  therefore  he  may,  with  equal  facility,  sys- 
tematize his  accounts. 

The  advantages  which  result  from  the  following  plan  will  be 
obvious  to  the  man  of  business  ; — each  person's  account  being 
regularly  made  up  in  the  Journal  once  a  month,  saves  the  labor 
of  examining  the  Day  Book  to  select  the  various  items  which 
compose  the  account ;  while  the  process  of  posting  and  balancing 
the  Ledger  is  rendered  far  more  simple  than  ihat  of  Single  Entry. 
In  this  set  every  transaction  is  recorded  in  the  Day  Book,  except 
the  receipts  and  payments  of  money.  The  Journal  is  composed 
from  the  Cash  Book  and  Day  Book,  the  bills  received  and  ac- 
cepted being  so  few  in  number  as  to  render  a  Bill  Book  unneces- 
sary or  inexpedient. 


CASH  BOOK— Set  I. 


108 


CASH    BOOK. SET    I. 


Dr. 


CASH. 


Received. 


18.36 

Jan.    1 
/'    30 


To  Stock,  .     .     . 
To  Merchandise, 


capital  in  trade, 
sales  this  month. 


Feb.  1 

n  10 

n  12 

n  15 

n  20 

n  28 


Mar.  1 
1 
5 
13 
14 
15 
19 
21 
30 


Entered  Journal  ^  Page  1. 


To  Balance,     .... 
To  Commercial  Bank, 
To  Benjamin  Canfield, 
To  Commercial  Bank, 
To  Charles  Drummond, 
To  Merchandise,     .     . 


from  last  month 
F  order,  .  . 
on  account,  . 
^  order,  .  . 
on  account,  . 
sales  this  mouth 


Entered  Joumalj  Page  2. 


To  Balance,  .  .  .  , 
To  Bills  Receivable,  . 
To  Edward  Ford,  .  . 
To  Aaron  Brown,  .  . 
To  Commercial  Bank, 
To  Commercial  Bank, 
To  Bills  Receivable,  . 
To  Benjamin  Canfield, 
To  Commercial  Bank, 


from  last  month. 
No.  1,  A.  Brown, 
on  account,   .     . 
do.  .     . 

F  order,    .     .     . 
do.  ... 

No.  2,  discounted, 
in  full,  .... 
W  order,     .     .     . 


Entered  Journal^  Page  3. 


5,000  00 

187,58 


5,187  58 


342  21 

150  00 
120  00 
500  00 
34  26, 
375,83 


1,522  30 


336  55 

105  50 

16  25 

500  00 

600  00 

895  63 

750  00 

5  25 

1,785  50 


68 


CASH    BOOK. SET    I, 


109 


CONTRA. 


Cr. 


Paid. 


1836 
Jan.    5 

n      30 


Feb.  2 
10 
15 
21 
27 


Mar. 


By  Commercial  Bank,     .     deposited  this  day, 

By  Charges, paid  this  month,  . 

By  Balance, to  next  month, 


Entered  Journal^  Pog^  !• 


By  James  Andrews  &  Co. 
By  Private  Account, 
By  David  Evans,    . 
By  Merchandise,    . 
By  Charges,  .     .     . 
By  Balance,  .     .     . 


on  account,  .  .  . 
for  personal  expenses, 
on  account,  .  .  . 
for  cotton  checks,  . 
paid  this  month,  .  . 
to  next  mouth,     .     . 


Entered  Journal^  Page  2. 


By  David  Evans,  . 
By  Commercial  Bank, 
By  David  Evans,  . 
By  Bills  Payable,  . 
By  Profit  and  Loss, 
By  Private  Account 
By  Charges,      .     . 
By  Charges,      .     . 

By  Bills  Payable, . 
By  Balance,      .     . 


on  account,      .     .     . 
deposited  this  day,    . 

in  full, 

No.  1,  Andrews  &  Co. 
discount  on  bill  No.  2, 
for  personal  expenses, 
1  quarter's  rent  store, 
clerk's  salary,     .     .     . 

No.  2,  Brown  &  Co. 
on  hand, 


4,800 

45 

342 


125 
125 


00 
37 
21 

58 


450  00 
50  00 

500100 

150;00 
3575 

33G  55 


1,522 


30 


60  13 

350:00 

1,000,00 

895  63 

56 

75 


6 
35 


250 

1,785 

611 

4,994 


00 
50 
11 

68 


Entered  Journal,  Page  4. 


DAY   BOOK.— Set  I. 


112  DAY    BOOK. SET    I. 

1  New  York,  January  1,  1836. 

Bought  of  James  Andrews  &  Co. 

16  ps.  Broad-clolh, 1,450  25 

12  "    Cassimere, 445  38 

8  

Sold  Aaron  Brown, 

14  yds.  Blue  Cloth,     ...    ^  3  25,     ...    45  50 
8    '/     Black  do.        ...    rS)  7  50,     ...    60  00 

15 

Accepted  a  Bill  drawn  by  James  Andrews  &  Co.  payable 
to  then*  order.  No.  1,  due  March  15, 

30 

Received  from  Aaron  Brown,  his  note,  at  30  days,  No.  1, 
payable  March  1,    .     . 

February  2,  1836. 

Sold  Charles  Drummond, 

8    yds.  Cassimere,  ....     rS)  2  75,     ...    22  00 
n    n    Broad-cloth,     ...    r5)  7  50,    ...     14  06 

4  

Sold  Benjamin  Canfield, 

3  ps.  Cassimere,  48  yds.    .     .     (a)  2  50, 

. 6  

Bought  of  David  Evans, 

Cloths,  Vestings,  &c.  ^  Invoice, 

9 

Sold  Edward  Ford, 

15  yds.  Cassimere,  ....     ^  2  50, 

^10 

Sold  Benjamin  Canfield, 

4  ps.  Toilinette,  62  yds.    .    .    ^  1  00, 


1,895 


63 


105 


895 


105 


50 


63 


50 


36 


120 


1,575 


I    37 


06 


00 


50 


62  00 


DAY    BOOK. — SET    I. 


113 


New  York,  February  12,  1836. 


Sold  Edward  Ford, 

10  yds.  Brown  Cloth,    .    .     .    rS)  5  50,   .     .     .     55  00 
15    //    Blue  Cloth,   ....    rS)  8  25,  ...  123  75 


178 


75 


15 


Sold  Charles  Drummond, 

6  ps.  Toilinette,  87-^  yds. .    .    ^  1  00, 


20- 


87 


50 


Allowed  to  Charles  Drummond, 
5  F  cent  discount  on  36  00, 


25 


80 


Sold  Benjamin  Canfield, 

12  yds.  Black  Cloth,    ...    rS)  5  25,     ...    63  00 
14    n    Blue      do.       .    .    .    ^  8  00,     .    .    .  112  00 


175 


00 


30 


Bought  a  quantity  of  Groods  at  auction,  for  which  I  gave 
my  note,  in  favor  of  Brown  &  Co.  payable  in  30  days. 
No.  2,  due  March  30, 


I,785l50 


Sold  Benjamin  Canfield, 

28  yds.  Cotttm  Check, .    .    .    ®  18|  cts. 


25 


Sold  Charles  Drummond, 
12  yds.  Blue  Cloth,  . 
10  //  Black  do.  . 
15  1 1  Brown  do.  . 
28  "  Cassimere,  . 
28    n    Cotton  Check, 


.  ^  7  00,  . 

.  ^  5  00,  . 

.  ^  5  50,  . 

.  rS)  2  75,  . 

.  (a)  181,  . 


.  84  00 

.  50  00 

.  82  50 

.  77  00 

.  5  25 


298 


75 


Sold  George  Harrison, 

Cloths  and  Cassimeres,  ^  R  P.  for  which  he  has  given 
me  his  note,  payable  in  60  days.  No.  2,  due  May  3,    .    . 


750 


00 


15 


114 


DAY    BOOK. SET    I. 


New  York,  March  4,  1836. 


Received  of  Benjamin  Canfield,  his  note,  at  60  days,  No.  3, 
due  May  4, 


Sold  Edward  Ford, 
28  yds.  Cassimere, 


.    ^  2  50, 


8 


Sold  Henry  James, 

3    yds.  Cassimere,     ....     ^    2  75,    ...    8  25 
U     n    Broadcloth,   .     .    .    .     rS)  10  00,    .    .    .  18  75 


10 


Sold  John  King  &  Co. 
9  yds.  Blue  Cloth, 
9     //    Black  do. 
8     "    Cassimere, 
5     //    Toilinette, 


/S)  8  00, 
(a)  8  50, 
(a)  3  00, 
(a)  1  25, 


12 


Allowed  by  David  Evans, 

1  W  cent  discount  on  1,575  00, 


13 


Sold  Aaron  Brown, 

2  ps.  Blue  Cloth,  56  yds. 

3  n   Black  do.     75     // 

4  /'   Cassimere,  112     " 
3  "   Toilinette,     75     » 


Co)  5  00, 

(a)  6  50, 

(a)  2  50, 

(a)  75, 


Sold  Charles  Drummond, 
28  yds.  Blue  Cloth,  . 


14 


15 


(a)  7  50, 


72  00 

76  50 

24  00 

6  25 


280  00 

487  50 

280  00 

56  25 


Received  from  Edward  Ford,  his  note,  payable  in  30  days, 
No.  4,  due  April  15, 


21 


Sold  Edward  Ford, 
28  yds.  Black  Cloth, 
14    II    Cassimere,    . 


/a)  8  00,    .    .    .  224  00 
^  2  55,     .    .    .    35  00 


237 


70 


00 


00 


27 


00 


178 


75 


15J75 


1,103 


210 


200 


75 


00 


00 


259 


00 


DAY    BOOK. SET    L 


115 


New  York,  March  25,  1836. 


Sold  Henry  James, 

]2  yds.  Toilinette,     .    .    .    ,  (a)      75,  ...    9  00 

15    /'    Cassimere,     ....  rS)  3  00,  ...  45  00 

10    n    Black  Cloth,      ...  rS)  7  50,  ...  75  00 


27 


Sold  John  King  &  Co. 

28  yds.  Black  Cloth,  ....    ^  7  00, 


28 


Bought  of  James  Andrews  &  Co. 
Merchandise,  ^  Invoice,  .    . 


Sold  Charles  Drummond, 
15  yds.  Cassimere,    . 


(a)  2  00, 


30 


Accepted  a  bill  drawn  by  J.  Andrews  &  Co.,  payable  to 
their  order.  No.  2,  due  April  30, 


Received  of  Henry  James,  a  draft  on  Thompson  &  Co., 
payable  at  10  days'  sight,  in  full  for  his  account,     .     .    . 


John  King  &  Co  have  accepted  my  draft,  payable  30  days 
from  this  date, 


129 


196 


750 


30 


550 


156 


374 


00 


00 


00 


00 


00 


00 


75 


Note. — The  merchandise  on  hand  the  30  March,  as  ^  Inventory,  amounts  to  2,500  ;  which  must 
be  entered  at  the  credit  side  of  the  Merchandise  Account  in  the  Ledger,  previous  to  closing  the 
books. 


JOURNAL— Set  I 


118 


JOURNAL. SET    I. 

New  York,  January,  1836. 
Cash,  Dr.  to  Sundries, 

Received  this  month,  ^  C.  B. 

To  Stock, 

1st,        for  Capital  in  trade, 

To  Merchandise, 

30th,        for  sales  this  month, 

Sundries,  Dr.  to  Cash, 

Paid  this  month,  ^  C.  B. 

Commercial  Bank, 

5th,        deposited  this  day, 

Charges, 

30th,        expenses  this  month,     .... 

Merchandise,  Dr.  to  James  Andrews  Sf  Co. 
1st,        purchased  this  month,  .... 


Aaron  Brown,  Dr.  to  Merchandise, 

8th,        for  14  yds.  Cloth,    .    rS)  3  25,    .    45  50 
8    //       do.      .    ^  7  50,    .    60  00 


James  Andrews  &  Co.,  Dr.  to  Bills  Payable, 
15th,        No.  1,  due  March  15, 


Bills  Receivable,  Dr.  to  Aaron  Brown, 
30th,        No.  1,  due  March  1, .    .    .    . 


5,000 


00 


1871,58 
.187  58 


4,800 

45 

4,845 


00 
37 
37 


63 


105 


50 


895  63 


105 


50 


JOURNAL. SET    I. 


119 


New  York,  February^  1836. 


2  Cash,  Dr.  to  Sundries, 

Received  this  month,  ^  C.  B. 

2       To  Commercial  Bank, 

10th,         r  order, 150  00 

15th,        r  order, 500  00 

2       To  Benjamin  Canfield, 

12th,        on  account, 

2  To  Charles  Drummond, 
20th,        on  account, 

3  To  Merchandise, 
28th,        sales  this  month, 


650 

120 

34 

375 

1,180 


Sundries,  Dr.  to  Cash, 

Paid  this  month,  ^  C.  B. 

James  Andrews  &  Co. 

2d,        on  account,  .    .    . 
Private  Account, 

10th,        personal  expenses, 
David  Evans, 

15th,        on  account,  .     .     . 
Merchandise, 

21st,        for  Cotton  Checks, 
Charges, 

27th,        postages,  &c    .    . 


450 

50 

500 

150 

35 

1,185 


00 
00 
00 
00 
75 
75 


Merchandise,  Dr.  to  Sundries, 

For  Purchases  this  month. 

1       To  David  Evans, 

6th,        for  amount  of  Invoice, 
3       To  Bills  Payable, 

30th,        No,  2,  due  March  30, 


1,575 
1,785 


50 


3,361  38 


V 


120 


JOURNAL. — SET    I. 


New  York,  February,  1836. 


Sundries,  Dr.  to  Merchandise^ 

For  Sales  this  month. 

Charles  Drummond, 

2d,        8    yds.  Cassimere, 
1|    //    Broadcloth, 
15th,      S7h    "    Toilinette,  . 


(a)  2  75,    22  00 

(a)  7  50,     14  06 
(a)  1  00,    87  50 


Benjamin  Canfield, 

4th,        3  ps.   Cassimere,  48  yds. /a)  2  50,  120  00 

9th,        4    //    Toilinette,  62    /'   ^  1  00,  62  00 

25th,       12  yds.  Black  Cloth,      .     ^  5  25,  63  00 


14 


Blue      do. 


(a)S  00,  112  00 


Edward  Ford, 

9th,      15  yds.  Cassimere,    . 
12th,       10    f    Brown  Cloth, 
15    "    Blue        do. 


^2  50,  37  50 
(a)  5  50,  55  00 
^8  25,  123  75 


Profit  and  Loss,  Dr.  to  Charles  Drummondy 
20th,        discount  allowed, 


March,  1836. 


Cash,  Dr.  to  Sundries, 

Received  this  month,  <^  C.  B. 

To  Bills  Receivable, 

1st,        No.  1,  A.  Brown, 105  50 

19th,        No.  2,  discounted, 750  00 


To  Edward  Ford, 

5th,         on  account, 

To  Aaron  Brown, 

13th,        on  account, 

To  Commercial  Bank, 

14th,        r  order, 600  00 

15th,  do. 895  63 

30th,  do 1,785  50 


To  Benjamin  Canfield, 
21st,        in  full, 


123 


357 


216 


56 


00 


25 


696  81 


80 


855 

16 

500 


3,281 
5 

4,658 


JOURNAL. — SET    I. 


121 


New  York,  March,  1836. 
Sundries,  Dr.  to  Cash, 

Paid  this  month,  ^  C.  B. 

David  Evans, 

3d,        on  account, 60  13 

13th,        in  full, 1,000  00 

Commercial  Bank, 

6th,        deposited  this  day, 

Bills  Payable, 

15th,        No.  1,  J.  Andrews  &  Co.     .    .     895  63 
30th,        No.  2,  Brown  &  Co 1,785  50 

Profit  and  Loss, 

19th,        discount  on  Bill  No.  2, 

Private  Account, 

25th,        for  personal  expenses, 

Charges, 

30th,        rent,  and  clerk's  salary, 


Sundries,  Dr.  to  Merchandise, 

For  Sales  this  month. 

Benjamin  Canfield, 

1st,        28  yds.  Cotton  Check,  (cb  1^  cts.  .    .    , 
Charles  Drummond, 

2d,        Sundries,  r  B.  P 298  75 

14th,        28  yds.  Cloth,     .    .    ^  7  50,    .  210  00 
25th,        15    "    Cassimere, .    r5)  2  00,    .    30  00 

Bills  Receivable, 

3d,        No  2,  G.  Harrison,   ....#... 
Edward  Ford, 

6th,        28  yds.  Cassimere, .     ^5)  2  50,    .    70  00 

21st,        28    "    Cloth,     .    .    ^  8  00,    .  224  00 

14    »    Cassimere,      rS)  2  50,     .     35  00 

Henry  James, 

8th,        3    yds.  Cassimere,      rS)    2  75,  .      8  25 

n    n    Broadcloth,     (a)  10  00,  .     18  75 

25th,        Sundries,  r  B.  P 129  00 

John  King  &  Co. 

10th,        Sundries,  r  B.  P 178  75 

27th,        28  yds.  Black  Cloth,   ^  7  00,    .  196  00 

Aaron  Brown, 

13th,        Sundries,  f  B.  P 


1,060 
350 

2,681 

6 

35 

250 

4,383 


538 

750 

329 

156 

374 
1,103 
3,257 


25 

75 

00 

00 

00 

75 
75 

50 


16 


122 


JOURNAL. SET    I. 


5                                     New  York,  March,  1836. 

3 
4 

2 

2 
1 
3 
3 

4 
3 

1 
1 

Merchandise,  Dr.  to  James  Andrews  Sf  Co. 
28th,        for  amount  of  their  Invoice, 

750 

00 

Bills  Receivable,  Dr.  to  Sundries, 

For  Bills  received  this  month. 

To  Benjamin  Canfield, 

4th,        No.  3,  due  May  4, 

To  Edward  Ford, 

15th,        No.  4,  due  AprillS, 

To  Henry  James, 

30th,        draft  on  Thompson, 

To  John  King  &  Co. 

30th,        for  their  acceptance, 

237 
200 
156 
374 

00 
00 
00 
75 

967 

75 

James  Andrews  &  Co.  Dr.  to  Bills  Payable, 
30th,        No.  2,  due  April  30, 

550 

00 

David  Evans,  Dr.  to  ProJU  and  Loss, 
12th,        discount  allowed  by  him, 

" 

75 

LEDGER— Set  I 


INDEX. 


A 

Andrews,  James  &  Co. ...  4 

B 

Bills  Receivable, 2 

Bills  Payable, 3 

Brown,  Aaron 4 

JBalance  Account, 4 

C 

Ciommercial  Bank,     ....  2 

Cash  Account, 2 

Canfield,B 2 

Charges, 3 

D 

Druramond,  C 2 

E 

Evans,  David 1 


F 

Ford,  Edward 1 

J 

James,  Henry 3 

K 

King,  John  &  Co 3 

M 

Merchandise, 3 

P 

Private  Account, 1 

Profit  and  Loss, 1 

S 
Stock, 1 


LEDGER. 


•SET    I. 


125 


Dr. 


Stock. 


Cr. 


1836 
Mar.    30 


To  Private  Account, 
To  Balance,  .    .    . 


85 
5,556 


1836 
Jan.       1 
Mar.    30 


By  Cash,     .     ,    .    . 
By  Profit  and  Loss, 


5,oon 


5,642 


48 


Dr. 


Private  Account. 


Cr. 


1836 
Feb.    10 
Mar.    25 


To  Cashy 
To  Cash, 


85 


1836 
Mar.    30 


By  Stock, 


85 


Dr. 


Profit  and  Loss. 


Cr. 


1836 
Feb.    20 
Mar.    19 
30 


To  C.  Drummond, 
To  Cash,    .    .    . 


To  Charges,   .    . 
To  Stock,  .    .    . 


1836 

3 

1 

80 

Mar.  12 

4 

6 

56 

30 

331 

12 

642 

48 

981 

96 

By  D.  Evans,      . 
By  Merchandise, 


1575 
966  21 


981 


Dr. 


David  Evans. 


Cr. 


1836 
Feb.    15 
Majr.    13 


To  Cash,  .  .  .  . 
To  Cash,  .... 
To  Profit  and  Loss, 


500 

1,060 

15 

1,575 


1836 
Feb. 


By  Merchandise, 


1,575 


1,575 


Dr. 


Edward  Ford. 


Cr. 


1836     I 
Feb.     12    To  Merchandise, 
Mar.    21    To  Merchandise, 


1  1836 

3 

216 

25 

Mar.  5 

4 

^9 

00 

15 
30 

545 

25 

1 
1 

By  Cash 

By  Bills  Receivable,  . 
By  Balance,    .... 


3 
5 

16 
200 
329 

545 

126 


LEDGER. SET    I. 


■■  2 

j)r.                                Bills  Receivable.                                 Cr. 

1836 
Jan.    30 
Mar.      3 
30 

1 
To  A.  Brown,     .    .    . 
To  Merchandise,    .    . 
To  Sundries,  .... 

1 
4 
5 

105 
750 
967 

00 
75 

1836 
Mar.    19 
30 

By  Cash, 3 

By  Balance,  .... 

855  50 
967  75 

1,823 

25 

1,823  25 

1 

1 

Br.                               Commercial  Bank.                                Cr. 

1836 
Jan.       5 
Mar.      6 

To  Cash, 

To  Cash, 

1 
4 

4,800 
350 

00 
00 

00 

1 

1 

.1836 
Feb.    15 
Mar.    30 
30 

By  Cash,    .....      2 

By  Cash, 3 

By  Balance,   .... 

650  OC 
3,281  IC 
1,218  87 

5,150 

5,150  0( 

__ 

Dr.                                          Cash.                                           Cr. 

1836 
Jan.     30 
Feb.    28 
Mar.    30 

To  Sundries,  .... 
To  Sundries,  .... 
To  Sundries,  .... 

1 
2 
3 

5,187 
1,180 
4,658 

58 
09 
13 

80 

1     1836 
Jan.     30 
Feb.    27 
Mar.    30 

By  Sundries,  .... 
By  Sundries,  ....      5 
By  Sundries,  ....      ' 
By  Balance,   .... 

1  4,845  3" 

2  1,185  7 
i      4,383  5 

611  1 

5 

7 

1 

11,025 

11,025  8 

9 

Dr.                              Benjamin  Canfield.                                Cr. 

1836 
Feb.    25 
Mar.      1 

To  Merchandise,     .    . 
To  Merchandise,    .    . 

3 
4 

357 
5 

00 
25 

25 

1 

1836 
Feb.    12 
Mar.      4 
21 

By  Cash, 

By  Bills  Receivable,  . 
By  Cash, 

2  190  0 
5         237  0 

3  52 

0 
0 
5 

362 

362  2 

5 

Dr.                             Charles  Drummond.                              Cr. 

1836 
Feb.    15 
Mar.  25 

To  Merchandise,    .    . 
To  Merchandise,    .    . 

3 

4 

123 

538 

56 
75 

1836 
Feb.    20 

Mar.   30 

By  Cash, 

By  Profit  and  Loss,     . 
By  Balance,   .... 

2          34  2 

4            1  8 

626  2 

6 
0 
5 

662 

31 

662  3 

1 

1 

LEDGER. SET    I. 


127 


Dr. 


Bills  Payable. 


Cr. 


1836 
Mar.    30 


To  Cash,    . 
To  Balance, 


2,68] 
550 


3.231 


1836 
Jan.     15 
Feb.    30 
xMar.    30 


By  J.  Andrews  &  Co. 
By  Merchandise,  . 
By  J.  Andrews  &  Co. 


895 

1,785 

550 


3,231 


Dr. 


Merchandise. 


Cr. 


Jan.  1 
Feb.    21 

30 
Mar.   28 

30 


To  J.  Andrews  &  Co. 

To  Cash 

To  Sundries,  .  .  . 
To  J.  Andrews  &  Co. 
To  Profit  and  Loss, 


1 

1 

1836 

1 

1,895  63 

Jan.  30 

2 

150  00 

3 

s! 

3,361 

3c<| 

Feb.  28 

5: 

750 

00 

28 

966 

21 
22 

Mar.  30 

7,123 

1 
1 

By  Cash,    . 
By  A.  Brown, 
By  Cash,    . 
By  Sundries, 
By  Sundries, 
By  Balance, 


1 

187 

1 

105 

2 

375 

3 

696 

4 

3,257 

2,500 

7,123 

Dr. 


Charges. 


Cr. 


1836 
Jan.     30 
Feb.    27 
Mar.    30 


To  Cash, 
To  Cash, 
To  Cash, 


45 

35 

250 


331 


1 1     1838 
371 1  Mar.    30 
75 
00 


By  Profit  and  Loss, 


331 


331 


Dr. 


Henry  James. 


Cr. 


1836 
Mar.   25    To  Merchandise, 


156  00 


Dr. 


John  King  &  Co. 


Cr. 


1836 
Mar.   30 


To  Merchandise, 


1 

1 

1 

1836 

1^ 

1 

1 

1 

.. 

75I 

Mar.  30 

1 
1 

' 

By  Bills  Receivable,  . 


374 


128 


LEDGER. SET    I. 


Dr. 


Aaron  Brown. 


Cr. 


Jan.      8 
Mar.    13 


To  Merchandise, 
To  Merchandise, 


105 
1,103 


1,209 


1836     1 
Jan.     30    By  Bills  Receivable, 
ar.    13    By  Cash,    .    .    .    . 
By  Balance,    .    .    . 


105 
500 
603 


1,209 


Dr. 


James  Andrews  &  Co. 


Cr. 


laac 

Jan.  15 
Feb.  2 
Mar.    30 


To  Bills  Payable, 
To  Cash,  .  .  . 
To  Bills  Payable, 
To  Balance,   .    . 


1 

lb36 

1 

895  631 

Jan.   1 

2 

450 

00 

Mar.  28 

5 

550 

00 

750 

00 

2,645 

63 

By  Merchandise, 
By  Merchandise, 


1,895 
750 


Dr. 


Balance. 


Cr. 


1836 
Mar.    30 


To  Cash, 

To  Bills  Receivable,  . 
To  Commercial  Bank, 
To  Aaron  Brown,  .  . 
To  Merchandise,  .  . 
To  C.  Drummond,  .  • 
To  Edward  Ford,   .    . 


1  1836 

2 

611 

11 

Mar.  30 

2 

967 

75 

1 

2 

1,218 

87 

4 

603 

75 

3 

2,500 

00 

2 

626 

25 

1 

329 

00 

6,856 

By  Bills  Payable,    .    . 
By  J.  Andrews  &.  Co. . 

Am't  of  my  debts,  ,    . 
By  Stock,  net  Capital, 


550100 
750100 


1.300 


5,556 


6,856  73 


*  It  will  be  observed  that  in  this  Set,  no  entries  of  Profit  and  Loss,  arising  at  Balancing,  have  been 
brought  through  the  Journal,  these  being  closed  as  simple  transfers  from  one  account  to  another,  in 
the  Ledger  only. 


FORM  OF  TRIAL  BALANCE. 


129 


FORM  OF  THE  TRIAL  BALANCE,  &c. 

When  all  the  accounts  have  been  collected  from  the  Ledger, 
add  both  columns  of  the  Trial  Balance,  and  If  they  are  equal,  the 
Ledger  has  been  correctly  posted.  If  the  two  sides  do  not  agree, 
some  error  has  been  committed. 

Accounts  in  which  both  sides  are  equals  are  omitted  for  the 
purpose  of  abridging  the  labor.     See  page  46. 


Trial  Balance,  March  30. 

Stock,     

Private  Account,  .  .  . 
Profit  and  Loss,    .... 

Edward  Ford, 

Cash, 

Bills  Receivable,  .... 
Commercial  Bank,  .  .  . 
Charles  Druramond,      .     . 

Bills  Payable, 

Merchandise, 

Charges, 

Aaron  Brown,  .... 
James  Andrews  &  Co. 


—  Drs. 


■Crs. 


Differences. 


—  Drs.—  I     —Crs 


85 


545 

11,025 

1,823 

5,150 

602 
2,681 
6,157 

331 
1,209  25 
1,895  63 


31,574 


86 


5,000 

15 

216 

10,414 

855 
3,931 


36  06 
3.231  13 


!    4,623 

605 
2,645 


31,574 


22 


86 


85 

329 

611 

967 

1,218 


626  25 


1,533 
331 

603 


6,307 


39 


5,000 

7 


550 


750 


6,307 


00 


00 


39 


Dr. 


PROFIT  AND  LOSS  SHEET. 


Cr. 


To  Sundries,  F  Ledger, 
To  Charores,     .     .     .     . 


To  Stock,  gain. 


8 
331 


339  48 
642  48 


981 


96 


By  D.  Evans,  F  Ledger, 
By  Merchandise,  .     .     . 


15 

966 


981 


96 


Dr. 


BALANCE  SHEET. 


Cr. 


Effects. 

To  Cash,  .... 
To  Bills  Receivable, 
To  Commercial  Bank, 
To  Aaron  Brown,  . 
To  C.  Drummond,  . 
To  Edward  Ford,  . 
To  Merchandise,  .     . 


611  11 

967,75 
1,21887 

603,75 

626|25i 

329 
2,500 


6,856 


73 


Dehts. 

By  Bills  Payable,      . 
By  J.  Andrews  &  Co. 

Amount  of  my  debts, 
By  Stock,  net  capital. 


17 


550 
750 


1,300 

5,.556 
6,856 


SET    II 


MERCHANTS'    ACCOUNTS 


EXEMPLIFIED    IN   THE    BOOKS    OF 

REED,    JONES    &    CO., 

GENERAL  MERCHANTS,  NEW  YORK. 


Concern, A  Partnership. 

Business, Commenced. 

Result, Profitable. 


PARTNERSHIP. 


Partnership  in  business  is  a  contract  between  two  or  more 
persons,  by  which  they  agree  to  join  either  their  money,  goods, 
labor,  or  skill,  or  all  of  them ;  and  to  divide  the  gain  or  sustain 
the  loss,  in  proportion  to  the  terms  of  copartnership. 


John  Reed,  Thomas  Jones,  and  B.  F.  Foster,  form  a  co- 
partnership as  general  merchants,  under  the  firm  of 

REED,  JONES  h  Co. 

Besides  acting  as  agents,  they  agree  to  embark  occasionally  in 
speculations,  or  adventures  on  their  own  account  or  in  company. 

They  consider  that  fourteen  thousand  four  hundred  dollars  will 
form  a  capital  sufficient  to  enable  them  to  carry  on  their  business, 
and  which  they  adcordingly  a4vance  in  cash  on  the  first  of  July, 
in  the  following  proportions  : — 

John  Reed,    .     .     .     .     ...     7,200,  or  3-6 

Thomas  Jones, 4,800,  or  2-6 

B.  F.  Foster,     ......     2,400,  or  1-6 

14,400. 

Each  partner  holding  an  interest  in  the  concern  equal  to  his 
capital  which  is  divided  into  six  shares. 

B.  F.  Foster  to  keep  the  books  of  the  company,  for  which 
he  is  to  be  allowed  by  the  other  partners,  |480  per  annum  in 
name  of  salary. 


CASH   BOOK— Set   II. 


134 


CASH    BOOK. SET    II. 


Dr. 


CASH. 


1836 

July  1 
Aug  20 
/    30 


Sept.  1 
/    13 


Oct.   1 

>  19 
,  20 
/    24 


To  Stock, for  joint  Capital,    . 

To  Interest, from  J.  Thompson, 

To  Bills  Receivable,  .    .    No.  \,  J.  Sterling,  . 


Entered  Journal^  Folio  1. 


To  Balance, from  last  month, 


To  Bills  Receivable, 


No.  4,  J.  Sterling,  . 


Entered  Journal,  Folio  3. 


To  Balance, from  last  month,    . 

To  Dawson  &  Co.      .     .  in  full, 

To  Bills  Receivable,  .     .  No.  2,  J.  Thompson, 

To  Vanderpoole  &  Co.  .  Bill  negotiated  20th, 


Entered  Journal^  Folio  5. 


Received. 


14,400 

7 
480 


14,887  22 


14,278 

480 


14,758 


6,493 

5,088 

960 

3,782 


16,324 


46 


30 


CASH    BOOK. SET    II, 


135 


CONTRA. 

1 
Cr. 

1836 

Aug.  4 
/'   20 

n     31 

II       II 

Sept.  4 
//   12 
"   15 

n     20 
II      II 
n     30 
II      II 

Oct.   1 

n      11 

,1    22 

n      29 

//    30 
1 

By  Charges,     ....    store  fixtures,  &c.     .     .     . 
By  John  Reed,     ,     .     .    personal  expenses,    .     .     . 

By  Charges,     ....     postages,  &c 

By  Balance,     ....     to  next  month,      .... 

Entered  Journal,  Folio  2. 

By  ship  Mars, .     .     ,    ,     for  1-6  share,  .     .     .     .     . 
By  Bills  Payable,      .     .     No.  1,  Murray  &  Co.   .     . 
By  Indigo  in  Co.       .     .     for  1,696  lb.  on  joint-ac- 
count with  J.  Ramsay,  each  ^  concerned,    .     . 

By  Cotton, freight,  &c.  r  Ann,      .     . 

By  Thomas  Jones,    .     .     personal  expenses,   .     .     . 
By  Charges,     ....     sundries,  r  Petty  C.  B.     . 
By  Balance,     ....     to  next  month,     .... 

Entered  Jmimal,  Folio  3. 

By  John  Ramsay,     .    .    for  sales  Indigo  in  Co. 
By  Bills  Payable,      .     .     No.  2  and  3,  Murray  &  Co. 
By  Bills  Payable,      .     .     No.  4,  J.  Thompson,     .     . 
By  Bills  Payable,      .     .     No.  7,  R.  Mason,      .     .     . 
By  Consign  m't  Charges,    duty,  &c.  F  Cuba,   .     .     . 
By  B.  F.  Foster,  .     .     .    personal  expenses,   .     .     . 
By  Charges,      ....     sundries,  ^  Petty  C.  B.    . 
By  Balance,      ....    to  next  month,     .... 

Entered  Journal,  Folio  5. 

Paid. 

332;64 

240  00 

36  12 

14,278  46 

14,887 

22 

00 
00 

44 

96 
00 
16 
90 

2,160 
960 

4,477 

446 

144 

76 

6,493 

14,758 

46 

242 

1,440 
2,640 
3,625 
1,797 
144 
74 
6,360 

16 
00 

00 
60 
28 
00 
52 
74 

16,324 

30 

136 


CASH   BOOK. — SET    II. 


Dr. 


CASH. 


1836 
Nov.  1 

n     20 

»   25 


Dec.  1 

n        2 
n     20 

n     25 
n     27 

To  Balance,  .     .    . 
To  Merchandise,    . 
To  E.  Robinson,     . 
To  Bills  Receivable, 
To  James  Risk, 


from  last  month,  .  , 
draw  back  on  Sugar,  . 
on  account  of  Cotton, 
No.  3,  J.  Thompson,  . 
in  full,  to  date,  .     .     . 


Entered  JournaL  Folio  7. 


To  Balance, from  last  month,     .     .     . 

To  Interest, discount  from  T.  Ryder, 

To  Bills  Receivable,  .     .  No.  9,  Rees  &  Co.      .     . 

To  Bills  Receivable,  .     .  No.  10,  Curtis  &  Co.  .     . 

To  Ship  Mars,  ....  our  1-6  gain,       .     .     .     . 


To  Bills  Receivable, 


No. 


Entered  Journal^  Folio  9. 


Received. 


6,360 
4,329 
1,705 
1,680 
4,970 


19,046 


6,435 
51 

2,400 
•  2,400 
446 


13.421 


48 


30 


CASH    BOOK. SET    II. 


137 


CONTRA. 


Cr. 


1836 

Nov.  4 
6 
10 
11 


20 
25 
29 
30 


Dec. 


1 
2 

10 
12 
13 
14 

20 

30 


By  Charges, .... 
By  Charges,'.     .    .     . 
By  Bills  Payable,  .     . 
By  John  Reed,  .     .     . 
By  Thomas  Jones, 
By  B.  F.  Foster,    .    . 
By  Charges,  .... 
By  Consignm't  Charges, 
By  Ross  &  Son,     .     . 
By  Consignm't  Charges, 
By  Bills  Payable,  .     . 
By  Charges,       ... 
By  Balance,  .... 


on  Shipment,  F  Spooner, 

do.  ^  Aurora, 

No.  5,  J.  Ramsay,  . 
private  account, 

do.  do. 

do.  do. 

rent,  &c.  r  P.  C.  B. 
on  Produce,  f-  Cuba, 
remitted  to  them,   . 
on  Produce,  f-  Cuba, 
No.  6,  Ross  &  Son, 
sundry  this  month, 
to  next  month,    .     . 


Entered  Journal,  Folio  7. 


By  John  Ramsay,  . 
By  Thomas  Ryder, 
By  Bills  Payable,  . 
By  Bills  Payable,  . 
By  John  Stirling,  . 
By  Bills  Payable,  . 
By  Interest,  .  .  . 
By  B.  F.  Foster,  . 
By  Consignm't  Charges, 
By  Charges,  .  .  . 
By  Balance,  .     .     . 


in  full, 

do 

No.  8,  W.  Irvine,  . 
No.  11,  J.  Ramsay, 
paid  Gray,  ^  order. 
No.  10,  J.  Thompson, 
discount  on  Bills,  . 
private  account,  . 
on  Produce,  ^  Cuba, 
postages,  &c.  .  . 
in  hand,    .... 


Entered  Journal,  Folio  9. 


Paid. 


339 

164 
1,972 

240 

144 
96 

120  00 
2,607|78 
2,71240 
1,523  42 
2,6I9|80 
69  72 
6,435  98 


19,046 


48 


598  08 

1,684|56 

2,2801.36 

1,698  48 

960  00 

2,400  00 

26,96 

96  00 

33|l4 

62jl4 

3,58158 


13,421  30 


18 


DAY   BOOK.— Set   II 


REMARKS  ON  DAY  BOOK.—Set  II. 

To  avoid  increasing  the  number  of  Subsidiary  Books,  which 
in  teaching  has  been  found  very  inconvenient,  every  transaction, 
except  the  money  received  and  paid,  is  entered  in  the  following 
Day  Book  ;  having  always,  reference  to  the  Subsidiary  Books  for 
particulars. 

The  amount  of  each  shipment  as  well  as  that  of  each  sale  on 
consignment,  is  arranged  in  the  order  of  their  dates ;  but  in  real 
business,  when  these  are  numerous,  it  is  customary  to  use  the 
Invoice  Book  Outward  and  the  Sales  Book  as  books  of  record 
for  the  original  entries,  and  to  journalize  from  these  books.  It  is 
also  usual  to  make  the  entries  in  the  Day  Book,  in  the  Journal 
form,  by  pointing  out  the  debtors  and  creditors  of  each,  which 
is  certainly  preferable  to  that  of  common  language ;  but,  for  the 
purpose  of  teaching,  the  narrative  form  here  adopted,  is  indis- 
pensably necessary. 

Instead  of  entering  money  paid  upon  goods  consigned  for  sale 
and  returns,  to  the  account  of  Charges,  an  account,  entitled 
*'  Consignment  Charges,"  is  debited  for  every  sum  paid,  and 
credited  when  the  sales  are  adjusted.  When  the  consignments 
are  all  sold,  the  difference  of  the  two  sides  of  this  account  is 
transferred  to  the  credit  of  Profit  and  Loss,  being  for  such  items 
as  are  not  a  direct  outlay.  But  when  any  of  the  consignments 
are  unsold  at  balancing,  it  will  be  found  sufficiently  accurate,  to 
consider  the  difference  between  the  Dr.  and  Cr.  sides,  as  the 
balance  of  the  account. 

In  preference  to  opening  an  account  for  the  goods  consigned 
by  each  vessel,  or  an  account  of  each  kind  of  goods,  we  have 
opened  only  one  general  account  for  all  consignments  under  the 
title  of  Sales  of  Consignments,  which  is  credited  for  the  amount 
of  the  sales,  and  debited  for  the  net  proceeds  and  all  charges. 
Should  it,  however,  be  intended  before  Balancing  not  to  enter 
the  net  proceeds  of  any  sale  to  the  credit  of  the  consigner  until 
his  consignment  be  all  sold,  the  difference  of  the  account,  entitled 
"  Sales  of  Consignments,"  will  exhibit  the  amount  of  such 
sales,  being  the  gross  sum  owing  by  you  to  the  consigner. 

The  forms  of  arranging  consignments  are  very  various.     Some 

Book-keepers  use  the  title  ^'  Sales  per  the  ship ,"  mentioning 

her  name,  or  A.  B.'s  Sales ;  others  number  each  sale,  and  open 
an  account  entitled  Sales  JVo.  1,  Sales  JVo.  2,  &fc.;  although  any 
one  of  these  titles  may  be  adopted  for  the  first  entry,  there  is  no 
room  for  choice  afterwards  ;  every  subsequent  entry  which  relates 
to  the  consignment,  must  be  journalized  conformably  to  the  original 
title  of  the  account. 


DAY    BOOK. SET    IL 


141 


New  York,  Jvly  a,  1836. 


Bought  of  John  Ramsay, 
Goods,  as  ^  Invoice,  . 


Effected  Insurance  with  James  Risk,  on  Goods  ^  the  Fame, 
for  New  Orleans. — Premium  and  Policy, 


Shipped  ^  the  Fame,  for  New  Orleans,  and  consigned  for 
sale  and  returns,  to  R.  Mason,  on  our  account  and  risk, 
as  ^  Invoice  Book, 

Goods,  amounting  to 1,972  96 

Charges,  at  shipping, 80  28 

Insurance,  as  above, 39  86 


Received  from  John  Stirling,  a  Bill  on  Foster  &  Co.  No.  1, 
due  August  31, 


18 


Effected  Insurance  with  James  Risk,  on  Produce  consigned 
to  us  ^  Cuba  from  Jamaica,  as  follows,  viz. — 

On  account  of  J.  Stirling, 

1,200  00  on  10  Hhds.  Sugar, 
1,728  00  on  30  Puncheons  Rum. 


2,928  00 


Premium  and  Policy,  ,    .    70  72 


On  account  of  Murray  &  Co. 
3,600  00  on  30  Hhds.  Sugar, 
1,200  00  on  10  Tierces  Coffee, 
432  00  on  40  Planks  Mahogany. 


5,232  00 


Premium  and  Policy,  .     .  124  40 


20 


Ordered  from  Robert  Mason,  New  Orleans,  100  Bales 
Cotton,  which  he  has  shipped  W  the  Ann,  amounting 
to 5,607  88 


Insured  with  James  Risk  on  the  above 
Cotton,  5,607  00.— Premium  and  Policy,  . 


106  56 


1,972 


39 


2,093 


96 


86 


10 


480  00 


195  12 


5,714 


44 


142 


DAY    BOOK. SET    II. 


New  York,  August  6,  1836. 


Accepted  Murray  &  Co.'s  di*afts  as  follows : — 

No.  1,  payable  to  T.  Fraser,  August  9,  at  31 

days'  sight, 960  00 

No.  2,  Williamson  &  Co.  60  days'  sight,  ...  960  00 

No.  3,  Ellis  &  Co.  60  days'  sight, 480  00 


2,400 


00 


20 


Effected  Insurance  with  James  Risk,  5,760  00  on  25  tons 
Hemp,  r  the  Vrow  from  Riga. 

Premium  and  Policy, 


106 


56 


To  accommodate  J.  Thompson,  we  have  received  his  two 

Bills  as  follows : — 

No.  9,  on  J.  Mills,  July  18,  at  3  mos 960  00 

No.  3,  on  W.  Bell,  July  22,  at  4  mos.  ....  1,680  00 

2,640  00 


For  which  we  have  granted  him  our  acceptance.  No.  4, 

payable  to  his  order  August  19,  at  2  months'  date,  .     .     .        2,640 


00 


Accepted  John  Ramsay's  draft.  No.  5,  payable  to  his  order, 
August  7,  at  3  months, 


96 


Received  on  account  of  J.  Stirling,  a  draft  on  Lloyd  &  Co. 
No.  4,  August  21,  at  20  days'  sight, 


480 


00 


Accepted  Ross  &  Sons  draft  payable  to  R,  Field,  No.  6, 
August  27,  at  3  months'  date,    . 


September  1,  1836. 


Bought  of  William  Irvine, 

Goods,  as  ^  Invoice,  amounting  to 


2,619 


2,280 


80 


Bought  of  John  Ramsay, 

Goods,  as  ^  Invoice,  amounting  to 


1,^ 


48 


DAY    BOOK. SET    II. 


143 


New  York,  September  3,  1836. 


Bought  of  Thomas  Ryder, 

Goods,  as  ^  Invoice,  amounting  to 


12 


1,684 


56 


Insured  with  James  Risk  6,720  00  on  goods  w  the  Spooner 
for  Jamaica. — Premium  and  Policy, 


159 


60 


13 


Shipped  on  board  the  Spooner  for  Jamaica,  by  order  and 
for  account  and  risk  of  the  following  persons,  as  ^  In- 
voice Book  Outward : — 


For  John  Stirling, 
Goods,    . 
Charges, 
Commission, 


amounting  to 2,024  40 

at  shipping, 158  12 

on  Goods  and  Insurance,        66  56 


Insurance,  .    .    on  2,400  00, 57  00 


2,306 


08 


For  Murray  &  Co. 
Goods,    .     . 
Charges, 
Commission, 
Insurance,  . 


amounting  to 3,639  00 

at  shipping, 227  16 

on  Goods  and  Insurance,      118  24 
on  4,320  00, 102  60 


00 


6,393 


08 


15 


Ordered  on  joint  account  and  risk  with  Ross  &  Son,  Riga, 
each  party  one  half  concerned,  25  t^|^  Hemp,  which 
they  advise  having  shipped  for  our  address,jp^  the  Vrow, 
as  r  Invoice  received  this  day,  amounting  to  5^239  60. 

Our  i  of  which  is 


2,619 


80 


19 


Sold  Dawson  &  Co. 

16  Chests  Spanish  Indigo,  1,696  lb.    .    rS)  3  00      .    .        5,088 


20 


00 


Accepted  R.  Mason's  draft  in  favor  of  C.  Tyson,  No.  7,  at 

30  days' sight, 3,625 


60 


Received  from  R.  Mason  an  account  sales  of  Goods  con- 
signed to  him  ^  the  Fame,  the  net  proceeds  being  .     .     . 


1,982 


28 


144 


DAY    BOOK. SET    II* 


New  York,  September  20,  1836. 


Sold  Edward  Robinson, 
25  Bales  Cotton, 


30 


Bought  of  James  Thompson, 

40  Hhds.  refined  sugar  for  exportation. 
Amount,  as  ^  B.  P 


Finished  the  sales  of  Indigo  purchased  on  joint  account 
with  J.  Ramsay,  and  charged,  for 

Interest,     ....     on  cost  till  due 


Commission, 
Charges,    .     . 
John  Ramsay's 
Our  half  .     . 


2  F  cent  on  sales, 
at  delivery,  .     . 
h  of  net  gain,  is 
of  net  gain,  is   . 


October  4,  1836. 


20 


14,928 


20 

101 

3 

242 

242 

610 


40 


Accepted  William  Irvine's  draft,  No.  8,  payable  to  his  order 

Sept.  7,  at  3  months, 2,280 


11 


36 


Accepted  James  Thompson's  two  drafts. 

No.    9,  October  9,     .     ^  2  months,  .     .     .    2,400  00 
No.  10,        n      n,    .    (a)2       fi        ...    2,400  00 


4,800 


00 


Accepted  John  Ramsay's  draft.  No.  11,  September  9,  at  3 
months, 


20 


Insured  with  James  Risk,  11,520  00  on  Sugar  shipped  r 
Aurora,  for  Rotterdam.— Premium  and  Policy,  .... 


U 


48 


152 


64 


Shipped  r  Aurora  for  Rotterdam,  on  joint  account  and  risk 
of  J.  Ramsay,  Vanderpoole  &  Co.,  and  ourselves,  each 
\  concerned,  as  ^  Invoice  Book, 
40  Hhds.  refined  Sugar  (less  drawback),      .  10,598  80 

Charges,  at  shipping, 203  28 

Insurance,  as  above, ]52  64 

Commission,  on  Cost  and  Insurance,       .     .       360  24 


11,314  96 


DAY    BOOK. SET    II. 

New  York,  October  23,  1836. 

Charged  Vanderpoole  &  Co.  for  expenses  on  Bill  negotiated 
on  them  this  day, 

24 

Sold  E.  Robinson, 

25  Bales  Cotton,  amounting,  ^  S.  B.,  to 

Sold  Pringle  &  Son, 

50  Bales  Cotton,  amounting,  ^  S.  B.,  to 

25 

Procured  by  James  Risk,  the  settlement  of  a  total  loss  of 
Hemp,  ^  the  Vrow,  on  her  voyage  from  Riga  to  New 
York  ;  insured  the  20th  inst. 

The  sum  insured  being 5,760  00 

less — his  brokerage  h  f-  cent 28  72 

Net  sum  recovered, 5,731  28 

For  the  following  accounts  : — 

Insurance,    ...     for  Premium  and  Policy,     .     .     . 
Commission,     .     .     on  Insurance  and  settling,  .     .     , 

Ross  &  Son,     .     .    their  ^  net  recovery, 

Hemp  in  Co.     .     .    our  i  recovery, 

JVovemher  6,  1836mgj- 

Sold  Fenn  &  Park,  ^^^•l 

26  Puncheons  Rum,  ^  Cuba,  amounting^lPs.  B.,  to  . 

12 

Sold  John  Black, 

4  Puncheons  Rum,  W  Cuba,  F  S.  B 

20 

Received  E.  Robinson's  Bill,  No.  5,  October  25,  at  two 
months, 

— _ n      , 

Received  from  Vanderpoole  &  Co.  their  draft  on  Vanderloo, 
No.  6,  Nov.  20,  at  two  months'  sight, 


145 


10 


3,381 


75 


72 


60 


106  56 


144 

2,740 
2,740 

5,731 


3,207 


461 


1,686 


2,400 


08 
32 
32 

28 


54 


16 


72 


00 


146 


DAY    BOOK, 


■SET    II. 


Nbw  York,  JVovtmher  20,  1836. 


Made  up  Account  Sales  of  J.  Stirling's  30  Puncheons  Rum, 
consigned  ^  the  Cuba,  and  credited, 

Insurance,  ....  for  Premium  and  Policy,  .  . 
Consignm't  Charges,  for  freight,  duty,  &c.  .  .  . 
Commission,  ...  on  Insurance  and  Sales,  .  . 
John  Stirling,    ...     for  net  proceeds^ 


25 


Endorsed  to  James  Thompson,  Bill  No.  6,  on  Vanderloo, 
due  Jan.  23, 

26 


Received  Pringle  &  Son's  acceptance,  No.  7,  October  26, 
at  three  months 


30 


Received  from  Vanderpoole  &  Co.  Account  Sales  of  Sugar, 
consigned  to  them  r  Aurora,  two  thirds  of  the  net 
proceeds  being  8,856  00. 

John  Ramsay, for  his  J  proceeds,   .... 

Adventure  to  Rotterdam,      .    for  our  \  proceeds,  .... 


Charged  Ross  &  Son,  for 
Commission, 
Brokerage, 


n,  tOY^gauai 


ses  on  Bill  remitted  them, 
cent  on  2,712  00,      .     . 


December  1,  1836. 


Received  Fenn  &  Park's  acceptance.  No.  8,  Nov.  26,  at 
two  months 


Received  from  Vanderpoole  &  Co.,  3  drafts. 

No.    9,  on  Rees  &  Co.    Nov.  27,  2  mos.  sight, 

No.  10,  on  Curtis  &  Co.     n       „    2     „ 

No.  11,  on  Jones  &  Co.  Dec.   1,  2     ''         // 


4156 

454  98 

100  36 

3,071:80 

3,668  70 


2,400  00 


3,38160 


8,856 


13 


00 
00 

00 


56 
14  36 


27  92 


3,207 


54 


00 


2,400 
2,400  00 
1,656  00 

6,456  00 


DAY    BOOK. SET    II. 


147 


New  York,  December  1,  ]836. 


Charged  John  Ramsay,  ^  Account  Current,  for 

Interest,    ....     on  4,428  00,  till  Jan.  30,     .     .     .  30  24 

Commission,      -     .     h  W"  cent  on  do 22  03 


20 


58  27 


Sold  James  Thompson, 

10  Hhds.   Sugar,  consigned  W  Cuba,  Net,  131  cwt. 
0  qrs.  14  lbs.  at  20  00  V  cwt.  ^  S.  B. 


2,622 


50 


21 


Sold  Atwood  &  Co. 

30  Hhds.  Sugar,  consigned  w  Cuba,  Net,  378  cwt.  at 
20  00  r  cwt.  ^  S.  B 


7,560  00 


23 


Sold  Dawson  &  Co. 

10  Tierces  Coffee,  consigned  w  Cuba,  Net,  60  cwt. 
2  qrs.  at  30  48,  r  S.  B 


1,844  04 


Sold  James  Brown  &  Co. 

40  planks  Mahogany,  consigned  ^  Cuba,  1,344  feet, 
(a)  50  cts.,  r  S.  B 


672 


00 


24 


Endorsed  to  James  Thompson,  Bills  No.  8  and  11,      ...        4,863'54 
Discount  allowed  by  him  on  settlement, 242;36 


31 


5,105,90 


Made  up  the  Account  Sales  of  produce,  F  Cuba,  consigned 
by  John  Stirling,  and  Murray  &,  Co.,  ^  S.  B. : — 

John  Stirling,  for  net  proceeds  of 

10  Hhds.  Sugar,  due  January  20, 


Murray  &  Co.,  for  net  proceeds  of 

30  Hhds.  Sugar,  due  February  21,  ...  .  3,824  31 

10  Tierces  Coffee,  due  March  23,     ...  .  1,108  86 

40  planks  Maliogany,  due  January  21,      .  .     341  86 


1,411 


10 


Insurance,    ....  for  Premium  and  Policy, 

Consignm't  Charges,  for  duty,  freight,  &c. .     . 

Interest, on  Cash  advanced,      .     . 

Commission,     ...  on  Sales  and  Insurance, 


5,275  031 

153j56 

5,506  64 

39^47 

312  74 

12,698  54 


148 


DAY    BOOK. SET    11. 


8 


New  York,  December  31,  1836. 


John  Black  having  become  insolvent,  has  offered  his  cred- 
itors 60  r  cent  on  their  claims,  and  considering  it  for 
the  interest  of  our  employers,  we  have  accepted  this 
offer. 

The  loss  to  John  Stirling,  is 

Received  a  Bill  on  J.  Caution,  No.  12,  dated  December  12, 
for  the  balance, 


Made  up  the  following  accounts  to  this  date,  and  charged 
f  Account  Current  Book  : — 


Interest,  .  . 
Commission, 
Charges,  .    . 


Murray  &  Co.,  for 
Interest,  .  . 
Commission, 


8  42 

on  cash  paid  and  received,    9  60 
for  postages,  &c.      ...    7  44 


Charges,  . 


66  82 

on  cash  paid, 12  00 

for  postages, 6  00 


Due  by  the  following,  for  interest  to  this  date, 

John  Reed, 

Thomas  Jones, 

Ship  Mars, 


Due  to  B.  F.  Foster,  by  the  following, 

For  6  months'  salary  as  managing  partner,  viz 


John  Reed, 
Thomas  Jones, 


his  proportion, 


The  Interest  on  our  joint  Capital  to  date,  is 


Menwrandum.    Our  1-6  of  ship  Mars  is  valued  at  2,064  00. 


JOURNAL.— -Set  II 


150 


JOURNAL. SET    II. 


New  York,  July^  1836. 


Cash,  Dr.  to  Stock, 

1st,        for  our  joint  Capital  in  trade. 


Merchandise,  Dr.  to  John  Ramsay^ 
2d,        for  Goods,  ^  Invoice,    . 


Insurance,  Dr.  to  James  Risk, 

3d,        for  Premium  and  Policy  on  ship- 
ment, F  Fame, 39  86 

18th,        for  Premium  and  Policy  on  Pro- 
duce, r  Cuba, 195  12 


Adventure  to  New  Orleans,  Dr.  to  Sundries, 

4th,  for  Goods,  ^  Fame,  ^  Invoice  Book. 


To  Merchandise, 
To  Charges, 
To  Insurance,  . 


Bills  Receivable,  Dr.  to  J.  Stirling, 
9th,        No.  1,  due  August  30,   .    . 


4    I         Cotton,  Dr.  to  Sundries, 

20th,  for  cost  of  100  Bales,  W  Ann. 


To  R.  Mason,    . 
To  James  Risk, 


F  Invoice, 
Insurance, 


August,  1836. 


Cash,  Dr.  to  Sundries, 

As  ^  Cash  Book,  Folio  1. 

To  Interest, 

20th,        from  J.  Thompson,    . 
To  Bills  Receivable, 

30th,        No.  1,  John  Stirlmg, 


00 


1,972  96 


234  98 


1,972  96 

80  28 
39  86 


2,093 


10 


480  00 

r 


5,607 
106 

5,714 


7 
480 


487  22 


JOURNAL. — SET    II. 


161 


New  York,  August^  1836. 


2  Sundries,  Dr.  to  Cash, 

As  ^  Cash  Book,  Folio  1. 

2      Charges, 

4th,        fixtures,  &c 332  64 


31st,        expenses  this  month, 

John  Reed, 

20th,        for  private  expenses. 


36  12 


3G8 
240 
608 


Bills  Receivable,  Dr.  to  SundrieSf 

For.  Bills  received  this  month. 

To  James  Thompson, 

20th,        No.  2,  due  October  21,    . 
No.  3,  due  November  25, 


To  John  Stirling, 

2 1st,        No.  4,  due  September  13, 


960  00 
1,680  00 


2,640 

480 

3,120 


Sundries,  Dr.  to  Bills  Payable^ 

For  Bills  accepted  this  month. 

Murray  &  Co. 

9th,        No.  1,  due  September  12,     .    .  960  00 

No.  2,  due  October  11,      ...  960  00 

No.  3,  due  October  11,     ...  480  00 

James  Thompson, 

20th,        No.  4,  due  October  22, 

John  Ramsay, 

No.  5,  due  November  10, 

Ross  &  Son, 

27th,        No.  6,  due  November  30, 


2,400 


1,972 

2,619 


9,632 


Insurance,  Dr.  to  James  Risk^ 

20th,  for  Premium  and  PoUcy  on  Hemp,  ^ 
the  Vrow,  from  Riga,  the  sum  insured 
being  5,760  00, . 


106 


56 


162 


JOURNAL. — SET    II. 


New  York,  September,  1836. 

Cash,  Dr.  to  Bills  ReceivablCf 
13th,        No.  4,  J.  Stirling, 

Sundries,  Dr.  to  Cash, 

As  ^  Cash  Book,  Folio  1. 

Ship  Mars, 

4th,        our  1-6  share, 

Bills  Payable, 

12th,        No.  1,  Murray  &  Co 

Indigo  in  Co. 

15th,        for  1,696  lbs.,   on  joint   account   with 

J.  Ramsay,  r  B.  P 

Cotton, 

20th,        freight,  &c.  r  Ann, 

Thomas  Jones, 

20th,        personal  expenses, 

Charges, 

30th,        this  month, 

Merchandise,  Dr.  to  Sundries, 

Purchased  this  month. 

To  William  Irvine,      ...  1st, 

To  John  Ramsay,   ....  2d, 

To  Thomas  Ryder,      ...  3d, 

To  James  Thompson,      .    .  30th,  ....... 


Sundry  Accounts,  Dr.  to  Sundries, 

13th,  for  Goods  shipped  ^  the  Spooner,  for  Jamaica. 

—  Drs.  — 

John  Stirling, 2,306  08 

Murray  &  Co 4,087  00 

6,393  08 

—  Crs.  — 

To  Merchandise, 5,663  40 

To  Charges, 385  28 

To  Commission, 184  80 

To  Insurance, 159  60 


480 


00 


2,160  00 


960 

4,477 
446 
144 

76 


8,264 


2,280 

1,698 

1,684 

14,928 


36 
48 
56 
40 


08 


JOURNAL. SET    H. 


153 


60 


New  York,  Septemberj  1836. 

Insurance,  Dr.  to  James  Riskj 

13th,        for  Premium  and  Policy  on  6,720  00,  \ 

Spoonei*, 159 

Hemp  in  Co.,  Dr.  to  Ross  &f  Son, 

15tb,  for  25  tons,  ^  Vrow  from  Riga,  as  ^  Invoice. 

Our  h  of  which  is, 3,619 

Dawson  &  Co.,  Dr.  to  Indigo  in  Co. 
19th,        for  1,696  lbs.  rS)  3  00  r  lb 5,088 

E.  Robinson,  Dr,  to  Cotton, 
20th,        for  20  Bales,  ^p- S.  B 

R.  Mason,  Dr,  to  Sundries, 

To  Bills  Payable, 

20th,        No.  7,  favor  Tyson, 3  535 

To  Adventure  to  New  Orleans, 

20th,        net  proceeds  of  goods  ^  Fame, ....        j  ggg 


1!L 
4 


80 


00 


20 


Indigo  in  Co.,  Dr.  to  Sundries, 

30th,  for  the  following  as  ^  Sales  Book. 

1  To  Interest,      ....     on  cost, 20 

1  To  Commission,  .     .     .     2  ^  cent, 101 

2  To  Charges,     ....     at  delivery, 

9  To  John  Ramsay,     .    .    his  ^  gain, 242 

1  To  Profit  and  Loss, .    ,     our  k     " 242 


76 
62 
16 
16 


610 


56 


20 


154 


JOURNAL. SET    II. 


New  York,  October,  1836. 
Cash,  Dr.  to  Sundries, 

As  ^  Cash  Book,  Folio  1. 

10      To  Dawson  &  Co. 

19th,        in  full, 

2       To  Bills  Receivable, 

20th,  No.  2,  J.  Thompson, .... 
9       To  Vanderpoole  &  Co. 

24th,        Bill  negotiated  20th, .... 


5,088 

960 

3,782 

9,830 


Sundries,  Dr.  to  Cash, 

As  ^  Cash  Book,  Folio  1. 

9       John  Ramsay, 

1st,         in  full, 

3       Bills  Payable, 

11th,        No.  2,  Murray  &  Co.    .     .     .  960  00 

No.  3,            //                ...  480  00 

22d,        No.  4,  J.  Thompson,     .     .     .  2,640  00 

No.  7,  R.  Mason, 3,625  60 

3       Consignment  Charges, 

29th,        freight,  duty,  &c.  W'  Cuba, 

6      B.  F.  Foster, 

30th,        for  personal  expenses, 

2      Charges, 

30th,        paid  this  month, 


242 


7,705 

1,797 

144 

74 


16 


9,963  56 


Sundries,  Dr.  to  Bills  Payable, 

For  Acceptances  this  month. 

William  Irvine, 

4th,        No.  8,  due  December  10, 

James  Thompson, 

11th,        No.  9,  due  December  12,  .     .     2,400  00 
No.  10, ''  n         14,  .    .     2,400  00 


John  Ramsay, 

19th,        No.  11,  due  December  12, 


Insurance,  Dr.  to  James  Risk, 
20th, 


for  Premium  and  Policy,  on  Sugar  ^ 
Aurora,  for  Rotterdam, 


2,280 

4,800 
1,698 

8,778 


152 


36 

00 

48 
84 

64 


JOURNAL. 


■SET   n. 


156 


New  York,  Odoher,  1836. 

6 

Sundry  Accounts,  Dr.  to  Sundries, 

20th,  for  Sugar  ^  Aurora,  as  ^  Invoice  Book. 

—  Z>r5.— 

9 
9 
4 

John  Ramsay, his  J,     .     .     .     3,771  65 

Vanderpoole  &  Co.    .     .     .     their  ^, .     .     .     3,77165 
Adventure  to  Rotterdam,    .     our  J,    .     .    .    3,771  66 

11,314  96 

^Crs.- 

5 
2 
1 
2 

To  Merchandise,  40  Hhds.  Sugar,      .    .     .  10,598  80 

To  Charges,  .     .    at  shipping, 203  28 

To  Commission,    on  Goods  and  Insurance,        360  24 
To  Insurance,   .     Premium  and  Policy,      .        152  64 

11*^11 

ll,Oi^  tJ\} 

9 
9, 

Vanderpoole  &  Co.,  Dr.  to  Charges, 

20th,        for  expenses  on  Bill, 

10 

75 

4 

Sundries,  Dr.  to  Cotton, 

For  Sales  75  Bales. 

8 
8 

E.  Robinson, 

24th,        for  25  Bales, 

1,686 
3,381 

72 

60 

Pringle  &  Son, 

24th,        for  50  Bales, 

5,068 

32 

6 

James  Risk,  Dr.  to  Sundries, 

25th,  for  adjustment  of  total  loss  of  Hemp  ^  Vrow,  from  Riga. 

2 

1 
7 
4 

To  Insurance,     .     .     Premium  and  Policy,     .... 
To  Commission,     .     on  Insurance  and  settlement. 
To  Ross  &  Son,      .     their  ^  net  recovery,      .... 
To  Hemp  in  Co.     .    our  h     "          "             .... 

106 

144 

2,740 

2,740 

56 
08 
32 
32 

5,731 

28 

156 


JOURNAL. SET    11. 


New  York,  jYovember,  1836. 
Cash,  Dr.  to  Sundries, 

As  ^  Cash  Book,  Folio  1. 

To  Merchandise, 

20th,  drawback  on  Sugar,  .  .  . 
To  E.  Robinson, 

25th,  in  full  for  Cotton,  .... 
To  James  Risk, 

25th,        in  full, 

To  Bills  Receivable, 

25th,        No.  3,  J.  Thompson,      .     .     . 


Sundries,  Dr.  to  Cash, 

As  ^  Cash  Book,  Folio  1. 

Charges, 

4th,  on  Shipment  f  Spooner,  .    .    .  339  72 

6th,  n        do.        ^  Aurora,     .     .     .  164  70 

11th,        Rent,  &c.  r  P.  C.  B 120  00 

30th,         Postages,  &c 69  72 

Bills  Payable, 

10th,        No.  5,  J.  Ramsay, 1,972  96 

30th,        No.  6,  Ross  &  Son,    ....    2,619  80 

John  Reed, 

11th,        for  personal  expenses, 

Thomas  Jones, 

11th,        for  personal  expenses, 

B.  F.  Foster, 

11th,        for  personal  expenses, 

Consignment  Charges, 

20th,        duty,  freight,  &c.  w  Cuba,      .     2,607  78 

29th,  do.       do.  do.     .     .     1,523  42 

Ross  &  Son, 

25th,        remitted  them, 


Sundries,  Dr,  to  Sales  of  Consignments, 

For  Sales  of  30  Puncheons  of  Rum,  f-  Cuba. 

Fenn  &  Park, 

6th,        26  Puncheons,     .     (a)^  months, 
John  Black, 

12th,        4  Puncheons,  .    .    ^  3  months, 


4,329  60 
1,705J20 
4,970  94 
],680|00 


12,685  74 


4,592 
240 
144 

96 

4,13] 
2,712 


12,610 


14 

76 
00 
00 

00 

20 
40 
50 


3,207 

461 

3,668 


JOURNAL. 


■SET   ir. 


167 


New  York,  JVbvember,  1836. 
Bills  Receivable,  Dr.  to  Sundries, 

For  Bills  received  this  month. 

To  E.  Robinson, 

20th,  No.  5,  due  December  28,  .  . 
To  Vanderpoole  &  Co. 

20th,  No.  6,  due  January  23, .  .  . 
To  Pringle  &  Son, 

26th,        No.  7,  due  January  29, .    .    . 


Sales  of  Consig>'me]\ts,  Dr,  to  Sundries, 

25th,  for  adjustment  of  Sales  of  30  Puncheons  Rum  ^  Cuba, 
as  ^  S.  R 


To  Insurance, premium,  &c.    .     .     . 

To  Consignment  Charges,  freight,  &c 

To  Commission,    ....  on  Insurance  and  Sales, 

To  John  Stirling,  ....  net  proceeds,      .     .     . 


James  Thompson,  Dr.  to  Bills  Receivable, 
25th,        for  No.  6,  on  Vanderpoole,  due  Jan.  23, 


Vanderpoole  &  Co.,  Dr.  to  Sundnes, 

30th,  for  two-thirds  of  proceeds  of  Sales  ^  Aurora,  viz: 

To  John  Ramsay,  ....     his  |  proceeds. 
To  Adventure  to  Rotterdam,  our  J  " 


Ross  &  Son,  Dr.  to  Sundries, 

30th,  for  expenses  on  Bill  remitted  them. 


To  Commission, 


To  Charges, 


h  r  cent,  .     . 
for  Brokerage, 


1,686  72 
2,400,00 
3,38160 


7,468  32 


4156 
454 198 
100  36 


3,071 


3,668 


80 


70 


2,400 


00 


4,428  00 
4,428  00 


8,856 


00 


13,56 
1436 

27  92 


158 


JOURNAL. SET    IL 


New  York,  December,  ]836. 


I    5 


Cash,  Dr.  to  SundHes, 

As  ^  Cash  Book,  Folio  9. 

To  Interest, 

2d,        discount  from  T.  Ryder, 
To  Bills  Receivable, 

20th,    /    No.  9,  Rees  &  Co.     .     . 

No.  10,  Curtis  &  Co.     . 

27th,        No.  5,  E.  Robinson,  .    . 

To  Ship  Mars, 

25th,        for  one-sixth  gain,      .     . 


2,400  00 


Sundries,  Dr.  to  Cash, 

As  ^  Cash  Book,  Folio  2. 


John  Ramsay, 

1st,  in  full, 
Thomas  Ryder, 

2d}  in  full. 

Bills  Payable, 


10th, 
12th, 
14th, 


No.  8,  W.  Irvine, 2,280  36 

No.  11,  J.  Ramsay,    ....     1,698  48 
No.  10,  J.  Thompson,    .    .    .    2,400  00 


John  Stirling, 

13th,  paid  Gray,  .  .  . 
Interest, 

20th,  discount  on  Bills, 
B.  F.  Foster, 

20th,  private  account,  . 
Consignment  Charges, 


30th, 
Charges, 
30th, 


on  Produce  r  Cuba, 
postages,  &c.    .     .     . 


Bills  Receivable,  Dr.  to  Sundries, 

For  Bills  received  this  month. 


To  Fenn  &  Park, 

1st,         No.  8,  due  January  29, 
To  Vandei-poole  &  Co. 

1st,  No.  9,  due  January  30, 
No.  10,  due  January  30, 
No.  11,  due  February  4, 

To  John  Black, 

30th,   No.  12,  on  J.  Caution,  . 


2,400  00 
2,400  00  ' 
],656  00 


51 


84 


6,486 
446 


6,985 


1,684 

6,378 
960 
26 
96 
33 
62 


9,839 


3,207 

6,456 
276 


32 


54 


9,940  22 


JOURNAL. — SET    II. 


159 


New  York,  December^  1836. 
John  Ramsay,  Dr.  to  Sundries, 

1st,  as  ^  Account  Current. 

To  Interest, 

To  Commission, 

Sundries,  Dr.  to  Sales  of  Consignments^ 

For  Sales  of  Produce  consigned  ^  Cuba,  as  ^  Sales  Book. 

James  Thompson, 

20th,        10  Hhds.  Sugar, 

Atwood  &  Co. 

21st,         30  Hhds.  Sugar, , 

Dawson  &  Co. 

23d,         ]0  Tierces  Coffee, 

James  Brown  &  Co. 

23d,        40  planks  Mahogany, 

James  Thompson,  Dr.  to  Sundries, 

To  Bills  Receivable, 

24th,        for  Nos.  8  and  11, 

To  Interest, 

24th,        for  discount  on  settlement,     .     .    .    , 


10 


9 
7 
10 
10 


7 
6 


Sales  of  Consignments,  Dr.  to  Sundries, 

For  adjustment  of  Sales  of  Produce  ^  Cuba,  as  ^  S.  B. 

To  John  Stirling, 

31st,        lb  Hhds.  Sugar,  due  Jan.  20,  .... 
To  Murray  ^  Co. 

31st,        30  Hhds.  Sugar, 3,824  31 

10  Trcs.  Coffee, 1,108  86 

40  pinks.  Mahogany, .     ...  341  86 

To  Insurance, 

31st,        Premium  and  Policy, 

To  Consignment  Charges, 

31st,        duty,  freight,  &c 

To  Interest, 

31st,        on  Cash  advanced, 

To  Commission, 

31st,        on  Sales  and  Insurance, 


36  24 
22!03 


58  27 


2,622 

7,560 

1,844 

672 


12,698  54 


4,863  54 
242  36 

90 


5,105 


1,411 

5,275 
153 

5,506 

39 

312 


12,698 


160 


JOURNAL. SET    II. 


11 


New  York,  December,  1836. 


J.  Stirling,  Dr.  to  John  Black, 
31st,         for  loss  by  the  latter's  failure, 


Sundry  Accounts,  Dr.  to  SundrieSf 

As  ^  Account-Current  Book. 

—  Drs.  — 

John  Stirlmg, 

31st,        for  Interest,  Commission,  and 


Murray  &  Co. 

31st,        for  Interest,  Commission,  and 


25  46 


84  82 


110  28 


—  Crs.  — 

To  Interest, 75  24 

To  Commission, 21  60 

To  Charges, 13  44 


1  Sundries,  Dr.  to  Interest,  ? 

5       John  Reed, 

31st,        for  Interest  on  private  account  to  date,    . 
5       Thomas  Jones, 

31st,         for       do.  do.  do, 

5       Ship  Mars, 

31st,        for  Interest  on  our  one-sixth,     .... 


Sundries,  Dr.  to  B.  F.  Foster, 

31st,  for  6  months'  salary  due  him  as  manager. 


John  Reed,  . 
Thomas  Jones, 


Interest,  Dr.  to  Stock, 
Interest  on  joint  capital  to  31st  inst. 


JOURNAL. SET    II. 


161 


New  York,  December^  1836. 


12 


10 


2 
2 
5 
5 
5 
6 
6 
7 
10 
10 


10 


Profit  and  Loss,  Dr.  to  Sundries, 

To  close  the  following  Accounts  to  31st  inst. 


To  Charges, 

To  Adventure  to  New  Orleans, 


Sundries,  Dr.  to  Profit  and  Loss, 

For  gain  on  the  following  Accounts  to  31st  inst. 

Commission, 

Adventure  to  Rotterdam, 

Hemp  in  Co 

Cotton, 

Ship  Mars, 

Interest, 


Balance,  Dr.  to  Sundries, 

For  closing  all  Accounts  which  balance  in  our  favor,  to  31st  inst. 

To  Cash, 

To  Bills  Receivable, 

To  Ship  Mars, *     .     .     .     , 

To  John  Reed, 

To  Thomas  Jones, 

To  B.  F.  Foster, 

To  Murray  &  Co 

To  Atwood  &  Co 

To  Dawson  &  Co 

To  James  Brown  &  Co 

Amount  of  our  effects,     .... 


Sundries,  Dr.  to  Balance, 

For  closing  all  Accounts  wherein  the  balances  are  against  ns. 


Bills  Payable, 
John  Stirling, 


Ainount  of  our  delta, 


564 
110 


675 


656 


120152 
612  12 


316 
57 


3,581 

3,658 

2,064 

630 

387 

96 

1,296 

7,560 

1,844 

672 


21,789 


2,400 
1,966 


4,366 


00 


21 


LEDGER.— -Set   II 


INDEX. 


Adventure  to  New  Orleans,  .  3 
Adventure  to  Rotterdam,  .  .  4 
Atwood  &  Co 7 

B 

Bills  Receivable, 2 

Bills  Payable, 3 

Black,  John  .......    9 

Brown,  James  &  Co.     ...  10 

Balance, 10 


Commission, 1 

Charges, 2 

Cash, 2 

Consignment  Charges,  .    .    .  .  3 
Cotton, 4 


Dawson  &  Co. 


10 


Foster,  B.F 6 

Fenn&Park, 7 

H 

Hemp  in  Co 4 

I 

Interest, 1 

Insurance, 2 

Indigo  in  Co 4 


Irvine,  William     .....  8 

J 

Jones,  Thomas 5 

M 

Merchandise, 5 

Mason,  Robert 6 

Murray  &  Co 6 

P 

Profit  and  Loss, 1 

Pringle  &  Son, 8 

R 

Reed,  John 5 

Risk,  James 6 

Ross  &  Son, 7 

Robinson,  E 8 

Ryder,  Thomas 8 

Ramsay,  John 9 

S 

Stock, 1 

Sales  Consignments,  ....  3 

Ship  Mars, 5 

Stirling,  John 7 

T 

Thompson,  James      ....  9 

V 

Vanderpoole  &  Co 9 


LEDGER. 


•SET    II. 


165 


Dr. 


Stock. 


Cr. 


1836 
Dec.    31 


To  Balance, 


17,422 


17,422 


1836 
July      1 
Dec,    31 
31 


By  Cash,  .  .  .  . 
By  Interest,  .  .  . 
By  Profit  and  Loss, 


14,400 

432 

2,590 


Dr. 


Profit  and  Loss. 


Cr. 


1836 
Dec.    31 
31 


To  Sundries, 
To  Stock,  . 


675 
2,590 


1836 
Sept.  30 
Dec.    31 


By  Indigo  in  Co. 
By  Sundries,  . 


242 
3,024 


3,266 


34 


Dr. 


Interest. 


Cr. 


183C 
Dec.    20 
31 
31 


To  Cash,  .  .  .  . 
To  Stock,  .  .  .  . 
To  Profit  and  Loss, 


516 


85 


1836 

Aug.    20 

SepL    30 

Dec      2 

1 

24 

31 

31 

31 


By  Cash, 

By  Indigo  in  Co.     .    . 

By  Cash, 

By  J.  Ramsay,  .  .  . 
By  J.  Thompson,  .  . 
By  Sales  Consignm'ts, 
By  Sundries,  .  .  .  . 
By  Sundries,  .    .    .    . 


Dr. 


Commission. 


1 

7 

4 

20 

9 

51 

10 

36 

10 

242 

10 

39 

11 

75 

11 

43 

516 

85 


Cr. 


1836 
Dec.    31 


To  Profit  and  Loss, 


1836 
1,261  17    Sept.   13 

30 
Oct.    20 

25 
Nov.   25 

30 
Dec.      1 

31 

31 

1,261 


By  Sundries,  .  .  .  . 
By  Indigo  in  Co.  .  . 
By  Sundries,  .... 
By  J.  Risk,  .  .  .  . 
By  Sales  Consignm'ts, 
By  Ross  &,  Son, .  .  . 
By  J.  Ramsay,  .  .  . 
By  Sales  Consignm'ts, 
By  Sundries,  .    .    .    . 


3 

184 

4 

101 

6 

360 

6 

144 

8 

100 

8 

13 

10 

22 

10 

312 

11 

21 

1,261 

166 


LEDGER 


■SET    II. 


Dr. 


Insurance. 


Cr. 


1836 
July    18 
Aug.   20 
Sept,   12 
Oct.    20 


To  James  Risk,  , 
To  James  Risk, . 
To  James  Risk, 
To  James  Risk, 


234 
106 
159 
152 


1836 
July      4 

Sept.  13 
Oct.  20 
25 
Nov.  25 
Dec.    31 


By  Adventure  to  New 
Orleans,  .  .  .  . 
By  Sundries,  .... 
By  Sundries,  .  .  .  . 
By  J.  Risk,  .... 
By  Sales  Consignm'ts, 
By  Sales  Consignm'ts, 


1 

39 

3 

159 

6 

152 

6 

106 

8 

41 

10 

1 

153 

653 

Dr. 


Charges. 


Cr. 


1836 
Aug.  31 
Sept,  30 
Oct.  30 
Nov.  30 
Dec,    30 


To  Cash, 
To  Cash, 
To  Cash, 
To  Cash^ 
To  Cash, 


368 


72 


1836 
July      4 

Sept.  13 
30 

Oct.  20 
23 

Nov.    30 

Dec.  30 
31 


By  Adventure  to  New 
Orleans,  .... 
By  Sundries,  .... 
By  Indigo  in  Co.  .  . 
By  Sundries,  .... 
By  Vanderpoole  &  Co. 
By  Ross  &  Son, .  .  . 
By  Sundries,  .... 
By  Profit  and  Loss,     . 


80 

385 

3 

203 

10 

14 

13 

564 


1,275 


Dr. 


Cash. 


Cr. 


1836 

July  1 

Aug.  30 

'Sept.  13 

Oct.  24 

Nov.  25 

Dec.  25 


To  Stock,  .... 
To  Sundries,  .  .  . 
To  Bills  Receivable, 
To  Sundries,  .  .  . 
To  Sundries,  .  .  . 
To  Sundries,  .    .    . 


14,400 

487 

480 

9,830 

12,685 

6,985 


44,868 


1836 
Aug.  30 
Sept.  13 
Oct.  30 
Nov.  25 
Dec.  30 
31 


By  Sundries, 
By  Sundries, 
By  Sundries, 
By  Sundries, 
By  Sundries, 
By  Balance, 


9,963 
12,610 


3,581 


44,868 


Dr. 


Bills  Receivable. 


Cr. 


1 

480 

GO 

3 

480 

00 

5 

960 

00 

7 

1,680 

00 

8 

2,400 

00 

9 

6,486 

72 

10 

4,863 

54 

12 

3,658 

28 

21,008 

54 

1836 
July      9 
Aug.    21 
Nov.   26 
Dec.    30 


To  J.  Stirling, 
To  Sundries,  . 
To  Sundries,  . 
To  Sundries,  . 


1836  1 

1 

480 

00 

Aug. 

30 

2 

3,120 

00 

Sept. 

13 

8 

7,468 

32 

Oct. 

20 

9 

9,940 

22 

Nov. 
Dec. 

25 
25 
27 
27 
27 

21,008 

54 

By  Cash, 

By  Cash, 

By  Cash, 

By  Cash, 

By  James  Thompson, . 

By  Cash 

By  James  Thompson, . 
By  Balance,    .    .    .    . 


LEDGER. 


•SET 


167 


Dr, 


Bills  Payable. 


Cr. 


18bb 
Sept.  12 
Oct.  22 
Nov.  30 
Dec.  14 
31 


To  Cash,  . 
To  Cash,  . 
To  Cash,  . 
To  Cash,  . 
To  Balance, 


7,705 
4,592 
6,378 
2,400 


I  22,037 


183b 
Aug.    27 
Sept.  20 
Oct     19 


By  Sundries, 
By  R.  Mason, 
By  Sundries, 


9,632 
3;625 

8,778 


22,037 


20 


Dr. 


Consignment  Charges. 


CV-. 


1836 
Oct.    29 
Nov.    29 
Dec.    30 


To  Cash, 
To  Cash, 
To  Cash, 


1,797 

4,131 

33 


5,961 


1836 
Nov.    25 
Dec.    31 


By  Sales  Consignm'ts, 
By  Sales  Consignm'ts, 


454 
5,506 


5,961 


Dr. 


Sales  of  Consignments. 


Cr. 


Nov.   25 
Dec.    31 


To  Sundries, 
To  Sundries, 


3,668 
12,698 


16.367 


1836 
Nov.    12 
Dec.    23 


By  Sundries, 
By  Sundries, 


3,668 
12,698 


24 


Dr. 


Adventure  to  New  Orleans. 


Cr. 


July      4 


To  Sundries, 


2,093 
2,093 


1836 
Sept.  20 
Dec.    30 


By  R.  Mason,      .    . 
By  Profit  and  Loss, 


4 
12 

1,982  5 
110  { 

2,093 

168 


LEDGER. 


•SET    II. 


Dr. 


Adventure  to  Rotterdam. 


Cr. 


1836 
Oct.     20 
Dec.    31 


To  Sundries,  .     .    . 
To  Profit  and  Loss, 


3,771 
656 


4,428  00 


1836 
Nov.    30 


By  Vanderpoole  &  Co. 


4,428 


Dr. 


Hemp  in  Co. 


Cr. 


Sept.   15 
Dec.    31 


To  Ross  &  Son,.    . 
To  Profit  and  Loss, 


2,619 
120 


1836 
Oct,    25 


By  J.  Risk, 


2,740 


2,740 


32 


Dr. 


Indigo  in  Co. 


Cr. 


1836 
Sept.  15 


To  Cash,    .    . 
To  Sundries,  . 


610 


5,088 


1836 
Sept.  19 


By  Dawson  &  Co. 


5,088 


5,088 


Dr. 


Cotton. 


Cr. 


1836 
July    20 
Sept.  20 
Dec.    31 


To  Sundries,  .  .  . 
To  Cash,  .  .  .  . 
To  Profit  and  Loss, 


5,714 
446 
612 

6,773 


52 


1836 
Sept.  20 
Oct.     24 


By  E.  Robinson, 
By  Sundries,  .    . 


1,705 
5,1 


6,773 


LEDGER. SET    II. 


169 


Dr. 


Merchandise. 


Cr. 


Itf36 
July      2 
Sept.  30 


To  J.  Ramsay, 
To  Sundries,  . 


1.972 
20,59J 


22,564 


1836 
July      4 

Sept.  13 
Oct.  20 
Nov.    20 


By  Adventure  to  New 
Orleans,  .  .  .  . 
By  Sundries,  .  .  .  . 
By  Sundries,  .... 
By  Cash, 


1,972 
5,66:5 
10,598 
4,329 


22,564 


Dr. 


Ship  Mars,     (our  one  sixth.) 


Cr. 


1836 
Sept.     4 
Dec.    31 
31 


To  Cash,  .  .  .  . 
To  Interest,  .  .  . 
To  Profit  and  Loss, 


2,160 

34 

316 


2,510 


1836 
Dec.    25 
31 


By  Cash,    . 
By  Balance, 


446 
2,064 


2,510 


76 


Dr. 


John  Reed. 


Cr. 


1836 


Aug. 
Nov. 
Dec. 


To  Cash,  .  .  . 
To  Cash,  .  .  . 
To  Interest,  .  . 
To  B.  F.  Foster, 


840 
240 


630 


1836 
Dec.    31 


By  Balance, 


630 


630 


00 


00 


Dr. 


Thomas  Jones. 


Cr. 


1836 
Sept.  20 
Nov.    11 
Dec.    30 


To  Cash,  .  . 
To  Cash,  .  . 
To  Interest,  . 
To  B.  F.  Foster, 


22 


J  836 
Dec.    31 


By  Balance, 


387 


387 


00 


00 


170 


LEDGER. SET    II. 


Dr. 


B.  F.  Foster. 


Cr. 


1836 
Oct     30 
Nov.    11 
Dec.    20 


To  Cash, 
To  Cash, 
To  Cash, 


336 


1836 
Dec.    30 
31 


By  Sundries, 
By  Balance, 


240 


336 


00 


Dr. 


James  Risk. 


Cr. 


Oct.    26    To  Sundries, 


I  I 

5,73] 


5,731 


1836 
July  18 
20 
Aug.  20 
Sept.  12 
Oct.  20 
Nov.    25 


By  Insurance, 
By  Cotton,  . 
By  Insurance, 
By  Insurance, 
By  Insurance, 
By  Cash,    .    . 


. 

^ 

1 

106 

2 

106 

4 

159 

5 

152 

7 

4,970 

5,731 

56 


64 


Dr. 


Robert  Mason. 


Cr. 


1836 
Sept.  30    To  Sundries, 


1836 
5,607  88    July    20    By  Cotton, 


1      5,607 


Dr. 


Murray  &  Co. 


Cr. 


1836 
Aug.     9 
Sept.  13 
Dec.    31 


To  Bills  Payable, 
To  Sundries,  .  . 
To  Sundries,  .    . 


2,400 

4,087 

84 

6,571 


1836     I 
Dec.    31    By  Sales  Consignm'ts, 
31    By  Balance,    .    .    .    , 


5,275 
1,296 


6,571 


LEDGER. SET    II. 


171 


Dr. 


Jon^  Stirling. 


Cr. 


183b     I 

Sept.   13,  To  Sundries, 

Dec.    13  To  Cash,    . 

31  To  J.  Black, 

31 1  To  Sundries, 

I  To  Balance, 


2,306 
960 

184 

25 

1,966 


5,442 


1836 
July      9 
Aug.   21 
Nov.    25 


Dec    31 


By  Bills  Receivable,  . 
By  Bills  Receivable,  . 
By  Sales  Consignin'ts, 
By  Sales  Consignm'ts, 


48000 

480  00 

3,071  80 

1,411110 


5,442  90 


Dr. 


Ross  &  Son. 


Cr. 


1836 
Aug.    27 
Nov.    25 
30 


To  Bills  Payable, 
To  Cash,  .  .  . 
To  Sundries,  .    . 


2 

7 
8 

2,619 

2,712 

27 

.0 
40 
92 

12 

1836  1 
Sept  15 
Oct.  25 

5,360 

By  Hemp  in  Co. 
By  J.  Risk,     . 


4l 
6 

2,619 
2,740 

5,360 

Dr. 


Atwood  &  Co. 


Cr. 


1836  1836 

Dec.    21    To  Sales  Consignm'ts,     10      7,560  00    Dec    31    By  Balance, 


12      7,560  00 


Dr. 


Fenn  &  Park. 


Cr. 


1836  1836 

Nov.     6    To  Sales  Consignin'ts,      7      3,207  54    Dec.      1    By  Bills  Receivable,  .      9      3,207  54 


172 


LEDGER. SET    II. 


Dr.                                  William  Irvine.                                  Cr. 

1836 
Oct.      4 

To  Bills  Payable,   .    . 

5 

2,280 

36 

1836 
Sept.     1 

By  Merchandise,     .    . 

3 

2,280 

36 

Dr.                                  Pringle  &  Son.                                   Cr. 

1836 
Oct.    24 

To  Cotton,      .... 

6 

3,381 

60 

1836 
Nov.    26 

By  Bills  Receivable,  . 

8 

3,381 

60 

Dr.                                     E.  Robinson.                                       Cr. 

1836 
Sept.  20 
Oct.     24 

To  Cotton,      .... 
To  Cotton,      .... 

4 
6 

1,705 
1,686 

20 
72 

92 

1836 
Nov.    25 
20 

By  Cash, 

By  Bills  Receivable,  . 

7 
8 

1,705 
1,686 

20 
72 

3,391 

3,391 

92 

Dr.                                  Thomas  Ryder.                                   Cr.  "^' 

1836 
Dec.      2 

To  Cash, 

9 

1,684 

56 

1836 
Sept.   13 

By  Merchandise,     .    . 

3 

1,684 

56 

LEDGER. SET    II. 


173 


Dr. 


John  Ramsat. 


Cr. 


1836 
Aug.  20 
Oct.  1 
19 
20 
1 
31 


Dec. 


To  Bills  Payable, 
To  Cash,  .  .  . 
To  Bills  Payable, 
To  Sundries,  .  . 
To  Cash,  .  .  . 
To  Sundries,  .    . 


1,972 

242 

1,698 

3,771 

598 

58 

8,341 


1836 

July      2 

Sept.     2 

30 

Nov.   30 


By  Merchandise,  .  . 
By  Merchandise,  .  . 
By  Indigo  in  Co.  .  . 
By  Vanderpoole  &  Co. 


1 

1,972 

3 

1,698 

4 

242 

8 

4,420 

8,341 

Dr. 


James  Thompson. 


Cr. 


1836 
Aug.  20 
Oct  11 
Nov.  25 
Dec.  20 
24 


To  Bills  Payable,  .  . 
To  Bills  Payable,  .  . 
To  Bills  Receivable,  . 
To  Sales  Consignm'ts, 
To  Sundries,  .    .    .    . 


2,640 
4,800 
2,400 
2,622 
5,105 


17,568 


1836 
Aug.    20 
Sept.   30 


By  Bills  Receivable, 
By  Merchandise,     . 


2,640  00 
14,928  40 


17,568 


40 


Di'. 


Vanderpoole  &  Co. 


Cr. 


1836 
Oct.     2 

23 
Nov.   30 


To  Sundries, 
To  Charges, 
To  Sundries, 


3,771 
10 

8,856 


12,638 


1836 
Oct.     24 
Nov.    20 
Dec.      1 


By  Cash,  .  .  .  . 
By  Bills  Receivable, 
By  Bills  Receivable, 


3,782 
2,400 
6,456 


12,638 


Dr. 


John  Black. 


Cr. 


1836 
Nov.    12 


To  Sales  Consignm'ts, 


1836 
Dec.    30 
3] 


By  Bills  Receivable, 
By  J.  Stirling,     .    . 


276 
184 


461 


174 


LEDGER. SET    II. 


10 

Dr.                                   Dawson  &  Co.                                    Cr. 

183(j 
Sept.   19 
Dec.    23 

To  Indigo  in  Co.     .    . 
To  Sales  Consignm'ts, 

4 
10 

5,088 
1,844 

00 
04 

04 

1836 
Oct.     19 
Dec.    31 

By  Cash, 

By  Balance,    .... 

i 

5,088 
1,844 

00 
04 

04 
1 

6,932 

6,932 

1 

Dr.                             James  Brown  &  Co.                              O. 

1836 
Dec.    23 

To  Sales  Consignm'ts, 

10 

672 

00 

1836 
Dec.    31 

By  Balance,   .... 

12 

672 

00 

Dr.                                         Balance.                                          Cr. 

1836 
Dec.    31 

To  Sundries,  .    ;    .    . 

12 

21,789 

69 
69 

1836 
Dec.    31 
31 

By  Sundries,  .... 
By  Stock 

12 

1 

4,366 
17,422 

8l| 

21,789 

21,789 

69 

TRIAL  •BALANCE. 


175 


TRIAL  BALANCE  FOR  SET  IL 


December  31,  1836. 


Stock, 

Profit  and  Loss,     .     .     .     . 

Interest, 

Commission, 

Charges,       

Cash,       ....... 

Bills  Receivable,   .     .     .     . 

Bills  Payable, 

Adventure  to  New  Orleans, 
Adventure  to  Rotterdam,    . 

Hemp  in  Co., 

Cotton, 

Ship  Mars, 

John  Reed, 

Thomas  Jones,  .  .  .  , 
B.  F.  Foster, 

Murray  &  Co.,      .     .     .     . 

John  Stirling, 

Atwood  &  Co.,  .  .  .  . 
Dawson  &  Co.,  .  .  .  . 
J.  Brown  &  Co.,  .     .     .     . 


—  Drs. 

- 

Totals 

.  , 

—  Crs.— 

Totals. 

1 

« 

(( 

14,832:00 

tc 

(( 

242  16 

458 

96 

<< 

516 
3,261 

85 
17 

458  96 

16,852 

1H 

1,275 

72 

711 

01 

44,868 

68 

41,287 

10 

21 ,008 

54 

1 

17,350 

26 

19,637 

20 

22,037 

20 

86,790 

14 

81,385 

^7 

2,093 

10 

I 

1,982 

28 

3,771 

66 

4,428 

00 

2,619 

80 

2,740 

32 

6,161 

40 

6,773  52 

14,645 

96 

15,924 

1^ 

2,194 

62 

446  76 

630 

00 

«  it 

387)00 

ti    « 

336  00 

240  00 

1 

3,547 

6^ 

' 

686 

76 

6,57182 

5,275 

03 

3,476  02 

5,442 

90 

7,560,00 

« 

« 

6,932  04 
672  00 

5,088 
(I 

00 

25,211 

88 

1 

15,805 

93 

130,654 

56 

130,654 

56 

The  Trial  Balance  is  merely  a,  statement  of  the  amount  of  the  Drs.  and 
Crs.  in  the  Ledger,  and  is  used  to  prove  the  posting  of  that  book.  See 
remarks,  page  46. 

The  principle  upon  which  the  THcd  Balance  is  founded,  is  that  for  every 
sum  posted  to  the  Dr.  side  of  the  Ledger,  a  like  sum  is  entered  on  the  Ci\ 
side  ;  consequently  the  aggregate  amount  of  the  Drs.  and  Crs.  must  cor- 
respond, if  the  books  are  correct. 

The  following  are  the  most  usual  mistakes  in  posting  which  rfo  not  affect 
the  Trial  Balance,  viz. 

1.  A  sum  entered  to  a  wrong  account;  but  on  the  same  side  of  the 
Ledger  as  that  to  which  it  belongs. 

2.  A  Journal  entry  wholly  omitted. 

3.  A  Journal  entry  twice  posted.  The  most  effectual  check  against  the 
above,  or  any  similar  mistakes,  is  a  comparison  of  the  books  by  hco  per- 
sons. One  has  the  Journal,  and  reads  the  Ledger-folio,  the  title  of  the  ac- 
count, and  the  Drs.  and  Crs. ;  while  the  other  turns  to  the  account  in  the 
Ledger,  and  marks  off  the  entry  with  a  dot,  if  correct.  When  all  the  accounts 
have  been  thus  examined,  glance  over  the  Ledger  to  observe  if  the  mark  of 
comparison  be  affixed  to  each  entry.  If  not,  turn  to  the  entry  in  the  Journal 
which  had  not  been  marked,  and  see  if  it  be  right. 


176 


BALANCE    SHEET. SET    II. 


Dr. 


PROFIT  AND  LOSS  SHEET. 


Cr. 


To  Charges,     ....*. 
To  Advent,  to  New  Orleans, 


Net  Gain, 


564 
110 


675 
2,590 


3,266 


By  Commission,  .  . 
By  Adv'r.  to  Rotterdam 
By  Hemp  in  Co.  ,  . 
By  Cotton,  .... 
By  Ship  Mars,  .  . 
By  Interest,  .  .  . 
By  Profit  &  Loss,  F  Ledger, 


1,261 
656 
120 
612 


316  14 

57  89 
242  16 


3,266 


34 


Dr. 


BALANCE  SHEET. 


Cr. 


Effects.  — 

To  Cash  on  hand. 
To  Bills  Receivable, 
To  Ship  Mars,  . 
To  John  Reed,  . 
To  Thomas  Jones, 
To  B.  F,  Foster,  . 
To  Murray  &  Co. 
To  Atwood  &  Co. 
To  Davidson  &  Co. 
To  J.  Brown  &  Co. 


3,581 

58 

3,658 

28 

2,064 

00 

630 

00 

387 

00 

96 

00 

1,296 

79 

1,844 

04 

7,560 

00 

672 

00 

21,789 

69 

Debts. 

By  Bills  Payable,  No.  9,     . 
By  J.  Stirling,      .... 

Am't  of  our  debts. 


By  Stock,  Net  Capital, 


*  This  amount  is  transferred  to  the 
Stock  Account,  paofe  1,  and  is  not  entered 
in  the  Journal  with  the  other  Balances. 
See  remarks,  page  50. 


2,400 
1,966 


4,366 


17,422  81 


21.789 


00 


69 


The  Trial  Balance,  Profit  and  Loss,  and  Balance  Sheets, 
never  appear  in  a  merchant's  books ;  they  are  here  inserted  for 
the  assistance  of  the  learner. 


BILL   BOOK.—Set  II 


23 


178 


BILL    BOOK. SET 


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Jones  &  Co. 
J.  Caution, 

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s  Thompson 
Stirling, 

Edward  RobinsoE 

Vanderpoole  &  C 
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Fenn  &  Park, 
Vanderpoole  &  C 
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John  Black, 

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BILL    BOOK. 


SET    II. 


179 


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AN 


IMPROVED    JOURNAL, 


COMBINING 


SIMPLICITY    AND    ACCURACY 


IMPROVED  JOURNAL. 


In  the  following  pages  the  transactions  which  compose  the 
Cash  Book  and  Day  Book  for  Set  I.,  are  journalized  upon  an 
improved  plan,  which  combines  in  a  great  degree  the  simplicity 
of  Single,  with  the  advantages  of  Double  Entry.  This  plan  is 
now  followed  by  many  extensive  mercantile  houses ;  and  perhaps 
no  other  form  of  a  Journal,  possessing  equal  facilities,  could  be 
devised.  It  is  applicable  to  any  business  where  entries  of  the 
same  kind  occur  frequently,  such  as  booksellers,  retail  dealers, 
jobbers,  &ic. 

The  improvements  which  have  from  time  to  time  been  effected 
in  Book-keeping,  do  not  comprehend  any  change  in  the  principles 
of  Double  Entry ;  but  only  in  the  form  and  arrangement  of  the 
books. 

Explanation. — This  Journal  is  ruled  with  three  columns  for 
dollars  and  cents  on  the  Dr.  side,  and  three  similar  columns  on 
the  Cr.  side,  between  which  the  transactions  are  entered  in  the 
usual  technical  form.  The  "  Cash"  and  "  Merchandise"  columns 
exhibit  the  amount  of  Cash  received  and  paid,  and  of  Goods 
bought  and  sold  ;  these  amounts  are  carried  to  the  Ledger  only 
once  a  month,  which  saves  time,  and  prevents  the  merchandise 
and  cash  accounts  from  extending  to  a  great  length,  which  by 
posting  each  entry  singly,  is  unavoidable.  The  personal  accounts, 
and  all  other  entries,  except  cash  and  merchandise,  are  to  be 
arranged  in  the  inner  columns,  headed  "  Sundries;"  the  Drs.  in 
the  left,  and  the  Crs.  in  the  right  hand  column; — these  are  to  be 
posted  daily  in  the  usual  manner.  By  adding  the  columns  headed 
Merchandise,  Cash,  and  Sundries,  the  accuracy  of  the  Journal  is 
ascertained  ;  for  if  correct,  the  aggregate  of  the  Drs.  must  be 
equal  to  that  of  the  Crs.  In  this  specimen,  the  Cash  is  journal- 
ized daily;  but  it  might  with  equal  propriety,  be  entered  weekly 
or  monthly. 


IMPROVED    JOURNAL. 


183 


Drs. 


Boston,  Januat-y  1,  1836. 


Crs. 


1,895 


63 


1,895  63 


187 


5,187 


58 


1,575 


1,575 


iSundries 


4,800 


105 


105 


45 


5.952 

5,187 
1,895 


13,035 


450 


63 


120  00 


Cash,  Dr.  to  Stock, 
For  capital  in  trade, 


Merchandise.  Dr.  to  J.  Andrews  fy  Co. 
Bought,  as  ^  Invoice, 


Commercial  Bank,  Dr.  to  Cask, 
Deposited  this  day,    .... 


Aaron  Brown,  Dr.  to  Merchandise, 
14  yds.  Cloth,  .    (g)  3  25,    .    .    45  50 
8    //      do.      .    rg)  7  50,    .    .    60  33 


J.  Andrews  &  Co.  Dr.  to  Bills  Payable, 
For  No.  1,  due  March  15,    ...    . 


30- 


Bills  Receivable,  Dr.  to  A.  Brown, 
For  No.  1,  due  March  1,     .... 


Cash,  Dr.  to  Merchandise, 
For  Cash  Sales  this  month, 


Charges,  Dr.  to  Cash, 
Paid  this  month,    . 


Monthly  totals. - 
.    Sundries,    . 
.    Cash,      .    . 
.    Merchandise, 


Proof, 


FeJrwary  2, 1836.- 


J.  Andrews  &  Co.  Dr.  to  Cash, 
Paid  them  on  account,    .    .    . 


Sundries 
5,000  00 

63 


105 


4,845 
293 


13.035 


Charles  Drcmmond,  Dr.  to  Merchandise, 
8  yds.  Cassimere,  (S)  2  75,  .  22  00 
IJ    //    Bro.  Cloth,    ®  7  50,    .    14  06 


B.  Canfield,  Dr.  to  Merchandise, 
48  yds.  Cassimere,  .    .    @  2  50,    . 


Merchandise,  Dr.  to  D.  Evans, 
For  amount  his  Invoice,     .    . 


B.  Canfield,  Dr.  to  Merchandise, 
62yd3.  Toilinette,  .    .    ®  1  00, 

Amounts  forward. 


1,575 


1,575 


Cash. 


Mdze. 


4.800 


105 


50 


187 


58 


45 


4,845 


450 


00 


06 


120 


00 


00 


450 


218 


184 


IMPROVED    JOURNAL. 


Drs. 


Boston,  February  10,  1836. 


—  Crs.- 


Mdze. 
1,575  81 


150 


00 


Sundries. 


668 
37 


50 


120 


00 


500 


34: 


150 


00 


500 


87 


375 


83 


175 


35 


1,785 
3,511 


50 


1,734 
1,180 
3,511 


Amounts  forward. 


Edward  Ford,  Dr.  to  Merchandise^ 
15  yds.  Cassimere,   .    .    fS)  2  50, 


Cash,  Dr.  to  Commercial  Bank, 
border, 


Private  Account,  Dr.  to  Cash, 
For  Personal  expenses,  .    .    . 


12- 


Cash,  Dr.  to  B.  Canfield, 
On  account,  .... 


Edward  Ford,  Dr.  to  Merchandise^ 
10  yds.  Cloth,    .    (S)  5  50,  .     .    55  00 
15    //      do.        .    ©  8  25,  .    .  123  75 


15- 


Cash,  Dr.  te  Commercial  Bank, 
border, 


D.  Evans,  Dr.  to  Cash, 
On  account,  .    .    . 


C  Drummond,  Dr.  to  Merchandise, 
87^  yds.  Toilinette,      .    r®  1  00, 


-20- 


SuNDRiES,  Dr.  to  C.  Drummond, 

Cash, on  account,      .    . 

Profit  and  Loss,    .    for  discount,    .    . 


■21. 


Merchandise,  Dr.  to  Cash, 
Paid  for  Cotton  Checks, 


B.  Canfield,  Dr.  to  Merchandise, 

12  yds.  Cloth,    .    ®  5  25,  .    .     63  00 
14    ff      do.        .    <S)B  00,  .    .  112  00 


Cash,  Dr.  to  Merchandise, 
For  Cash  sales  this  month, 


Charges,  Dr.  to  Cash, 

For  Postages,  &c.  this  month,     .    .    . 


Merchandise,  Dr.  to  Bills  Payable, 
No.  2,  due  March  30,      .    .    .    . 


■  Monthly  totals. - 


uy 

Sundries, 

Cash,      . 


Merchandise,     .    . 
Proof, 


Sundries. 
T^75 


150 


120 


500 


00 


36 


1,785 


4,167 
1,185 
1,072 


6,425 


Cash. 
"150 


50 


500 


50 


Mdze 
218 


37 


178 


150 


35 


1,185 


75 


87 


75 


50 


175 


375 


1,072 


00 


83 


64 


IMPROVED    JOURNAL. 


185 


—  Drs. — 

Mdze.  1 

Cash.  1 

Sundries.]] 

105 

50 

n 

5 

298 

60 

750 

237 

// 
25 
75 
13 
00 
00 

16 

25 

// 

70 
350 

27 

178 

15 

00  , 
00  ^ 

00 

75 

75 

i 

s 

500 

00 

n 

1,000 
1,103 

00 
75 

210 

00 

621 

75 

4,306 

38 

Boston,  March  1,  1836. 


Crs.- 


Cash,  Dr.  to  Bills  Receivable, 
No.  1,  A  Brown,     .... 


B.  Canfield,  Dr.  to  Merchandise, 
28  yds.  Check,    .    (a)  18g  cts.     , 


C.  Drummond,  Dr.  to  Merchandise, 
For  Sundries,  as  ^  B.  P.    .    .  ' 


D.  Evans,  Dr.  to  Cash, 
Paid  him  on  account, 


Bills  Receivable,  Dr.  to  Merchandise, 
For  No.  2,  G.  Harrison, 


Bills  Receivable,  Dr.  to  B.  Canfield, 
For  No.  3,  due  May  4, 


Cash,  Dr.  to  Edward  Ford, 
On  account, 


E.  Ford.  Dr.  to  Merchandise, 

28  yds.  Cassimere,    .    (®  2  50,  .    .    . 


Commercial  Bank,  Dr.  to  Cash, 
Deposited  this  day,     .    .    .    . 


8 


H.  James,  Dr.  to  Merchandise, 

3   yds.  Cassimere,    rS)    2  75,    .    8  25 
1|    //    Bro.  Cloth,    ®  10  00,    .  18  75 


10 


John  Kino  &  Co.  Dr.  to  Merchandise, 
Sundries,  ^  B.  P. 


12. 


David  Evans,  Dr.  to  Profit  and  Loss, 
For  discount  allowed  by  him,     .    . 


Cash,  Dr  to  .Aaron  Brown, 
Received  on  account, 


D.  Evans,  Dr.  to  Cash, 
Paid  him  in  full,     . 


Aaron  Brown,  Dr.  to  Merchandise, 
Sundries,  ^  B.  P 

14 


C.  Drummond,  Dr.  to  Merchandise, 
28  yds.  Cloth, .    .    .    (a)  7  50,    . 


Amounts  forward. 


Sundries. 


24 


105 


237 


16 


500  00 


874 


Cash. 


350 


1,000  00 


Mdze. 


25 


75 


750 


00 


70 


00 


27 


178 


00 


75 


1,103 


210 
2,643 


75 


186 


IMPROVED    JOURNAL. 


—  Drs. 


Boston,  March  15,  1836. 


—  C^^.^ 


Mdze. 


Cash. 
"621 

1,495 


75 


750 


00 


25 


750 


00 


1,785 


50 


00 


4,658 


4,306 


38 


'■ —  \Mmounis  forward.  — 

Cash,  Dr.  to  Commercial  Bank, 

^  order,  14th  and  15th,  .    . 
15 


Bills  Payable,  Dr.  to  Cash, 
Paid  No.  1,  J.  Andrews  &  Co. 


Bills  Receivable,  Dr.  to  E.  Ford, 

For  No.  4,  due  April  15,      .    .    . 

19 


Cash,  Dr.  to  Bills  Receivable, 
Discounted  No.  2,  .    .    .    . 


56 


Profit  and  Loss,  Dr.  to  Cash, 
Paid  discount  on  Bill  No.  2, 
21 


Cash,  Dr.  to  B.  Canfield, 
Received  in  full,    .    . 


00 


Edward  Ford,  Dr.  to  Merchandise, 
28  yds.  Cloth,  .    .    ®8  00,    .224  00 
14    //    Cassimere,    (fi)  2  50,    .    35  00 


-25- 


35 


199 


196 


75 


Private  Account,  Dr.  to  Cash, 
For  personal  expenses,  .    .    . 


Oil 


H.  James,  Dr.  to  Merchandise, 
For  Goods,  *»-  B.  P.    .    .    . 
27 


John  King  &  Co.  Dr.  to  Merchandise, 
28  yds.  Cloth,     .    .    (a)  7  00,     .    . 


Merchandise,  Dr.  to  J.  .Andrews  4'  Co. 
Bought  of  them,  as  ^  Invoice,  .    .    . 


30 


1,785 
250 


550 
530 


00 


C.  Prummond,  Dr.  to  Merchandise, 
15  yds.  Cassimere,   .    .     ©  2  00, 
i 30 


Sundries. 
~~874~50 

1,495 


200 


750 


750 


Cash,  Dr.  to  Commercial  Bank, 
^  order,    


Sundries,  Dr.  to  Cash, 
Bills  Payable, 

Paid  No.  2,  Brown  &  Co.     . 
Charges, 
Paid  rent  and  clerk's  salary. 


J.  Andrews  &  Co.  Dr.  to  Bills  Payable, 
For  No.  2,  due  April  30, 


Bills  Receivable,  Dr.  to  Sundries, 
To  H.  James,  for  draft  on  Thompson, 
To  J.  King  &.  Co.  their  acceptance. 


9,174 

4,658 
750 

14,582 


70 


-  Totals. 

Sundries,  . 
Cash,  .  . 
Merchandise, 

Proof,  .  . 


550 


6,941 
4,383 
3,257 

14,582 


50 


Mdze. 
2;643  50 


63 


56 


35 


75 


2,035 


4,383 


3,257 


EXPIiAJVATION 

OF 

COMMERCIAL  TERMS  OR  EXPRESSIONS. 


Abandonment.  Its  most  ordinary  applica- 
tion in  commercial  transactions  is  to  marine 
insurances;  it  then  signifies  the  exercise  of  a 
right,  which  the  assured  claims,  to  call  upon 
underwriters  or  insurers  to  accept  of  what  is 
saved,  and  to  pay  the  full  amount  of  the  in- 
surance, as  if  a  total  loss  had  happened. 

Abatement,  is  a  discount  allowed  for  prompt 
payment ;  it  is  likewise  allowed  at  the  cus- 
tom-house on  goods  which  have  received 
damage  by  salt  water,  &c. 

Acceptance,  is  an  engagement  to  pay  a  bill, 
when  due,  according  to  the  tenor  of  the  ac- 
ceptance. 

Accommodation,  when  applied  to  bills  or 
notes,  are  those  for  which  no  value  has  been 
given;  that  is,  when  the  drawee  only  lends 
his  name ;  and  that  the  drawer  engages  to 
provide  him  with  the  means  of  payment  when 
the  bill  falls  due. 

Account- Current  is  a  state  of  mercantile 
transactions  with  correspondents,  drawn  out 
in  a  plain  and  circumstantial  manner  in  the 
form  of  Dr.  and  Cr.,  showing  how  aftairs 
stand  between  the  parties  at  the  time  when 
the  account  was  made  up. 

Account-Sales  is  an  account  of  goods  sold 
on  commission,  drawn  out  by  the  agent  to 
whom  they  were  consigned,  to  be  sent  to  his 
employer,  or  the  person  who  made  the  con- 
signment. 

Administrator,  a  person  to  whom  the  court 
commits  the  administration  of  the  goods  of 
a  person  deceased,  in  default  of  an  execu- 
tor. 

Advance,  money  paid  before  goods  are  de- 
livered, or  in  case  of  consignment,  before 
they  are  sold. 

Adventure,  when  a  merchant  exports  goods 
to  or  from  a  foreign  market  on  his  own 
account  and  risk,  it  is  called  an  individual 
speculation,  or  adventure,  to  or  from  that 
place. 

Advice,  mercantile  intelligence ;  to  advise 
a  bill  is  to  describe  the  amount,  date,  term, 
to  whom  payable,  &c.  and  request  the  person 
on  whom  drawn  to  accept  it. 

Agent,  a  person  duly  empowered  to  do 
business  for  another.  The  duty  of  an  agent 
is  to  procure  the  best  intelligence  of  the  state 


of  trade  at  the  place  where  he  resides— of  the 
quantity  and  quality  of  the  goods  in  the 
market — their  present  prices,  and  the  proba- 
bility of  their  rising  or  falling — to  pay  exact 
obedience  to  the  orders  of  employers — to  con- 
sult their  interest  in  all  matters  referred  to  his 
discretion — to  execute  their  business  with  all 
the  despatch  which  circumstances  will  admit 
— and  to  be  distinct  and  correct  in  his  ac- 
counts. 

Annuity,  a  periodical  payment  of  money, 
either  yearly,  half  yearly,  quarterly,  weekly, 
or  at  any  other  intervals. 

Annul,  in  book-keeping,  signifies  to  render 
an  article  of  no  import  in  the  account.  In- 
stead of  erasing  a  sum  which  has  been  entered 
by  mistake  on  the  Cr.  side  of  an  account,  the 
account  is  debited  for  the  same  sum ;  and,  on 
the  contrary,  if  a  sum  has  been  entered  on 
the  Dr.  side,  the  same  sum  is  placed  to  Cr. 
side  of  the  account. 

Arbitration,  the  determination  of  a  cause 
by  persons  mutually  chosen  by  the  parties. 

Assignee,  a  person  deputed  by  another  to 
manage  the  subject  of  a  bankrupt. 

Attachment,  the  act  by  which  a  creditor 
may  claim  and  seize  the  effects  of  his  debitor, 
wherever  they  may  be  found. 

Average,  a  contribution  made  for  losses  at 
sea.  Averages  are  distinguished  into  general 
and  particular.  General  Average  is  a  pro- 
portionable contribution  paid  by  all  the  jsro- 
prietors  of  a  ship  and  cargo  for  losses,  which 
are  made  with  a  view  to  safety,  such  as 
throwing  goods  overboard,  or  cutting  away 
masts  to  prevent  shipwreck,  ParticiSar  Av- 
erage is  a  contribution  for  such  damages  or 
losses  as  may  happen  from  the  common  ac- 
cidents of  sea. 

Award  is  the  judgment  of  arbitration  of 
one  or  more  persons,  at  the  request  of  two 
parties  who  are  at  variance,  for  ending  the 
matter  in  dispute. 

Balance  of  IVade,  the  difference  between 
the  commercial  exports  and  imports  of  one 
country  with  respect  to  another. 

Balance,  the  difference  between  the  Dr. 
and  Cr.  sides  of  an  account  in  a  merchant's 
books. 

Bankrupt,  a  trader  whom  misfortune  or 


188 


EXPLANATION  OF  COMMERCIAL  TERMS. 


extravagance  has  rendered  unable  to  pay  his 
debts. 

Barter,  the  exchanging  of  one  commodity 
for  anoiiier :  such  was  the  original  mode  of 
commerce  till  money  was  iiivenied. 

Bill,  a  term  generally  applied  to  a  draft  or 
promissory  note,  and  frequently  lo  an  account 
of  goods. 

Bill  of  Entry,  a  list  of  the  particulars  of 
goods  entered  at  the  cHstom-house. 

Bill  of  Lading,  a  printed  agreement  be- 
tween the  shipper  of  goods  and  the  captain 
of  a  ship,  binding  the  latter  to  deliver  them 
"  in  good  order  and  well  conditioned,"  on 
payment  of  a  certain  freight.  It  is  usual  to 
make  out  three  bills,  one  to  the  shipper,  the 
second  to  be  held  by  the  captain,  and  the 
third  to  be  sent  to  the  person  to  whom  the 
goods  are  consigned,  by  which  he  can  claim 
ihem  on  their  arrival. 

Bill  of  Sale,  is  a  contract,  under  seal, 
whereby  a  person  conveys  tlie  right  and  in- 
terest which  he  has  in  goods  and  Chattels. 

Bill  of  Store,  is  a  license  granted  by  the 
custom-house  lo  merchants,  lo  carry  such 
stores  and  provisions  as  are  necessary  for  a 
voyage,  free  of  dutj-. 

BUI  of  Exchange,  a  written  order  for  the 
payment  of  money,  issued  from  one  place, 
and  directed  to  another. 

Blank  Credit,  the  permission  which  one 
house  gives  to  another  to  draw  on  it  to  a 
certain  extent,  at  any  lime,  for  their  own  ac- 
commodation. 

Bounty,  a  premium  given  for  the  encour- 
agement of  some  branch  of  trade,  manufac- 
ture, or  agriculture. 

Bonded  Goods,  are  certain  articles  which, 
on  being  landed,  are  warehoused  upon  bond 
being  given  by  the  owner  for  the  payment  of 
duties,  &c. 

Bottomry,  is  a  contract  in  the  nature  of  a 
mortgage  of  a  ship,  when  the  owner  of  it 
borrows  money,  to  enable  him  to  carry  on  a 
voyage,  and  pledges  the  keel  or  bottom  of  the 
ship  as  a  security  for  the  repayment ;  and  it 
is  understood,  that  if  the  vesiel  be  lost,  the 
lender  loses  his  money. 

Broker,  an  agent  employed  by  merchants 
in  buying  and  selling  ;  who,  i'br  a  trifling 
■charge,  finds  the  merchant  buyers  in  one 
case,  and  sellers  in  the  oiher.  There  are 
several  kinds  of  brokers,  such  as  ship  bro- 
kers, insurance  brokers,  exchange  brokers, 
fitock  brokers,  &c. 

Brokerage,  is  a  commission  or  per  centage 
paid  by  merchants  to  brokers,  either  for  the 
sale  or  purchase  of  goods,  bills  of  exchange, 
stock,  &c. 

Capital  or  Stock,  the  effects  of  a  house  in 
money  or  wares,  by  means  of  which  it  carries 
on  trade  and  supports  its  credit. 

Charter  Party,  the  engagement  between 
the  owner  of  a  ship  and  the  merchant,  who 
engages  the  whole  ship  to  go  from  one  port 
to  another  with  goods,  for  a  certain  sum. 

Cherisance,  a  composition  between  debtor 
and  creditor. 

Circulating  Medium,  cash,  bank  notes,  or 
other  paper  money  payable  on  demand. 

Circular  Letter,  the  printed  notice  of  the 
establishment  or  dissolution  of  a  house,  or 
alleraliou  iu  the  firm,  &c.    See  Firm. 


Clearing  a  Vessel,  is  entering  all  particulars 
relating  to  her,  at  the  custom-house. 

Cocket,  a  custom-house  warrant  given  on 
the  entry  of  goods  for  exportation,  lo  signify 
ihey  have  paid  ihe  duty. 

Commission,  an  allowance  given  to  agents 
or  factors  fi:)r  transacting  the  business  of 
others,  always  so  nmch  per  cent. 

Compromise,  to  adjust  a  dispute  by  mutual 
concessions. 

Composition,  a  contract  between  an  insol- 
vent debtor,  and  his  creditors,  by  which  the 
latter  accepts  of  a  pai-t  of  the  debt  in  com- 
pensation for  the  whole. 

Consignnmtt,  goods  sent  by  one  house  to 
another  to  sell  for  their  account,  allowing" 
them  so  much  per  cent,  for  their  trouble.  See 
Commission. 

Contraband  Trade,  that  which  is  prohibited 
by  law. 

Contingent,  the  proportion  that  falls  to  the 
share  of  a  person  concerned  in  any  business 
or  advantage. 

Convoy,  ships  of  war  sailing  with  other 
ships  in  order  to  protect  them. 

Counter- Order,  an  order  sent  to  revoke  a 
former  one,  either  for  the  sale  or  purchase  of 
any  commodity. 

Credit,  in  general,  the  confidence  which 
one  house  reposes  in  another  :  more  peurlicu- 
larly  the  reverse  of  Debit. 

Currency,  the  money  in  circulation,  as  dis- 
tinguished from  bank  paper,  &c. 

Current,  a  term  used  to  express  the  present 
time.  Hence  the  price  airrent  of  any  mer- 
chandise, is  the  known  or  ordinary  price  at 
the  time  it  is  published. 

Custom-house,  where  entries  are  made  on 
goods  exported  or  imported,  and  the  duties 
imposed  by  law  paid. 

Days  of  Grace,  are  a  customary  number  of 
days  allowed  for  the  payment  of  a  bill  after 
the  same  becomes  due. 

Demand,  calling  upon  a  man  for  any  sum 
of  money,  or  any  other  thing  due.  A  bill  at 
sight  therefore  is  payable  on  demand. 

Debenture,  a  certificate  given  by  the  proper 
officers  of  the  customs  on  certain  goods  ex- 
ported, on  which  the  exporter  or  seller  is  en- 
titled to  a  drawback  or  bounty. 

Del  Credere.  A  per  centage  made  by  mer- 
chants in  selling  goods  for  guaranteeing  the 
solidity  of  the  purchaser. 

Demurrage,  a  penalty  incurred  by  mer- 
chants for  delaying  a  ship  beyond  the  time 
.specified  in  her  charter  party. 

Deviation,  is  a  departure  without  legal 
cau.se  from  the  regular  course  of  a  voyage, 
which  deviation  incapacitates  the  insured 
from  recovering,  in  ca.se  of  loss. 

Dishonor,  an  expression  made  use  of  when 
bills  of  exchange,  &,c.  are  refused  acceptance 
or  payment. 

Dividend,  a  share  of  any  capital,  debt,  or 
profit ;  also  the  interest  in  the  stocks. 

Dock,  a  place  where  vessels  are  built,  re- 
paired, laid  up,  or  lodged  for  loading  or  un- 
loading. 

Draft,  a  bill  or  check  by  which  one  person 
draws  money  on  another  j  also  a  small  allow- 
ance on  goods  sold  by  weight. 

Drawee,  the  person  on  whom  bills  of  ex- 
change are  drawn. 


EXPLANATION  OF  COMMERCIAL  TERMS. 


189 


Drawback,  a  premium  allowed  on  exporta- 
tions.     See  Debenture. 

Dubious-paper,  means  bills  drawn  on 
houses  oflilile  credit. 

Due  Protection,  regular  acceptance  or  pay- 
ment of  a  draft  or  bill. 

Duty,  the  tax  imposed  by  'government 
upon  the  import  or  export  of  goods. 

Effects,  monies,  goods,  or  movables  in  the 
hands  of  one  person  belonging  to  another. 

Embargo,  an  arrest  on  ships  or  merchandise 
by  public  authority. 

Emporium,  a  principal  place  for  the  im- 
portation and  sale  of  merchandise. 

Exchange,  a  place  in  most  large  cities 
where  merchants,  agents,  bankers,  brokers, 
and  other  commercial  characters  meet,  to 
confer  and  treat  together  of  matters  relating 
to  exchanges,  remittances,  payments,  atd- 
ventures,  assurance,  freights,  and  other  mer- 
cantile negotiations  both  by  sea  and  land. 

Exchanges,  the  paying  or  receiving  of 
money  in  one  country  for  its  equivalent  in  the 
money  of  another  country,  by  means  of  bills 
of  exchange. 

Failure,  is  where  a  person  in  trade,  through 
misfortune  or  imprudence,  is  unable  to  pay 
his  debts. 

Finances,  a  term  generally  applied  to  the 
public  revenues. 

Firm,  the  mercantile  appellation  of  a  house 
engaged  in  commerce. 

First-rate  Paper,  bills  drawn  or  accepted 
by  a  good  house,  such  cis  has  always  paid  its 
bills  regularly. 

Flat,  an  article  of  merchandise  is  said  to 
be  flat  when  there  are  few  buyers. 

Fore-closing  a  mortgage,  to  compel  pay- 
ment or  dispose  of  the  property. 

Fore-stalling,  the  purchasing  and  laying  up 
goods  before  they  come  to  market,'  with  the 
intention  of  raising  the  price. 

Folio,  the  debtor  and  creditor  side  of  a 
ledger,  or  account  book. 

Freight,  the  sum  paid  for  transporting 
merchandise  by  sea,  &c. 

Government,  "  for  your  government"  is  an 
expression  adopted  from  the  French,  signify- 
ing, ''  in  order  to  give  you  better  information, 
aiid  rules  for  acting  by,  in  the  purchase  or 
sale  of  any  merchandise." 

Guarantee,  a  person  who  undertakes  that 
certain  stipulations  shall  be  fulfilled. 

Honor,  to  honor  a  draft  is  to  accept  it  on 
presentation. 

Importation,  the  act  of  bringing  goods  into 
a  country  from  foreign  parts. 

Indemnitij,  is  where  one  person  secures 
another  from  responsibility  against  any  par- 
ticular event. 

Indorsement,  the  signature  which  the  holder 
of  a  negotiable  bill  writes  on  the  back  of  it, 
by  which  he  transfers  his  interest  to  a  third 
person. 

Ingrossing,  buying  up  large  quantities  of 
<;orn  or  other  provisions,  with  a  view  to  raise 
llieir  price,  and  sell  them  again. 

Insolvent,  a  person  in  trade  who  has  not  a 
capital  adequate  to  the  payment  of  his  debts. 

Instalments,  certain  propoi  lions  in  which, 
by  agreement  between  debtor  and  creditor,  a 
sum  due  is  to  be  paid  at  stipulated  times. 


Insurance  or  Assurance,  is  a  contract  of 
indemnity,  by  which  one  party  engages  for  a 
stipulated  sum,  to  insure  another  against  a 
risk,  to  which  he  is  exposed.  The  party  who 
takes  upon  him  the  risk,  is  called  the  Insurer, 
or  Underwriter ;  and  the  party  protected  by 
the  insurance  is  called  the  Insured  ;  the  sum 
paid  is  called  the  Premium  ;  and  the  instru- 
ment containing  the  contract  is  called  the 
Policy. 

Insurance  Broker,  a  person  employed  by 
merchants  to  efiect  insurance  on  their  ships 
and  cargoes. 

Interest,  a  premium  paid  for  the  use  or  loan 
of  money.  To  guard  a  person's  interest,  is 
to  protect  his  property',  and  watch  over  his 
concerns. 

Inventory,  an  account  or  catalogue  of 
effects ;  a  schedule. 

Invoice,  a  paper  sent  off  with  goods  exported 
on  commission,  or  for  the  shipper's  own  ac- 
count. 

Journal,  a  book  in  which  is  recorded  the 
transactions  of  the  Day  Book,  and  the  sub- 
sidiary ones,  having  the  Drs.  and  Crs.  pointed 
out,  in  order  to  post  them  with  more  ease  into 
the  ledger. 

Landwaiter,  an  officer  belonging  to  the 
custom-house,  whose  duty  it  is  to  take  an 
account  of  goods  imported. 

Lease,  a  contract  by  which,  in  consideration 
of  some  payment,  a  temporary  possession  is 
granted  of  houses  or  lands. 

Ledger,  is  the  principal  book  of  accounts 
kept  by  merchants  and  tradesmen,  in  which 
the  slate  of  every  person's  account  is  seen. 

Letter  of  Advice,  a  letter  giving  notice  of 
any  transaction. 

Letter  (/Attorney,  or  power  of  Attorney,  a 
writing  which  empowers  one  person  therein 
named  to  act  for  another. 

Letter  of  Credit,  a  letter  by  which  one 
person  can  receive  money  on  the  credit  of 
another. 

Letter  of  License,  is  a  written  permission 
granted  to  a  person  under  embarrassment, 
allowing  him  to  conduct  his  affairs  for  a 
certain  time  without  molestation. 

License,  a  privilege  from  government  for 
carrying  on  a  trade  or  business,  on  which  a 
certain  duty  is  laid. 

Lieu,  a  claim,  or  attachment  on  any  pro- 
perty which  a  person  has  in  his  possession, 
ibr  a  debt  due  to  him  from  the  owner  of  the 
property. 

Lighterage,  a  charge  for  carrying  goods  to 
and  from  a  ship  in  a  lighter. 

Liqtiidation,  is  the  winding  up  of  a  busi- 
ness, such  as  paying  and  receiving  all  debts, 
«!tc. 

Manifest,  a  list  of  a  ship's  cargo,  which 
paper  must  be  signed  by  the  master  of  the 
vessel,  before  any  of  the  goods  can  be  landed. 

Manufacture,  an  article  produced  by  labor 
or  machinery  from  any  raw  material. 

Manufactory,  denotes  a  place  where  sereral 
artificers  are  making  any  commodity,  or 
article  of  merchandise. 

Mart,  a  place  of  public  traffic  j  a  great 
market  or  fair. 

Maturity,  in  bills,  is  when  they  become 
due,  or  payable. 


190 


EXPLANATION  OF  COMMERCIAL  TERMS. 


Maximum,  the  highest  price  of  any  article, 
as  fixed  by  some  law  or  regulation. 

Merchandise,  all  sorts  of  goods  which  may 
be  bought  or  sold. 

Merchant,  a  wholesale  dealer  in  all  sorts  of 
goods  on  his  own  account. 

Mifiimum,  the  lowest  price  of  any  article, 
as  fixed  by  some  regulation. 

Mint,  the  place  where  the  public  or  cur- 
rent money  is  coined. 

Moneij,  metal  coined  for  the  purposes  of 
commerce. 

Monopoly,  the  sole  power  or  privilege  of 
selling  any  commodity,  whereby  any  person, 
or  bodies  politic  or  corporate,  are  sought  to 
be  restrained  of  any  freedom  they  had  before. 

Mutiuxl  Debts,  when  two  traders  are  in- 
debted to  each  other,  one  debt  may  be  set  off 
against  the  other,  and  in  case  of  bankruptcy, 
mutual  credits,  as  well  as  mutual  debts,  may 
be  set  off. 

Mutual  Promise,  is  when  one  person  prom- 
ises to  another  to  pay  mone>',  or  do  some 
other  act,  and  he,  in  consideration  thereof, 
promises  to  do  a  certain  act,  &c. 

National  Debt,  is  a  debt  due  by  any  whole 

I)olitical  community,  as  represented  by  their 
egislature  and  government. 

Net  Proceeds,  the  sum  which  goods  produce 
after  every  deduction  is  made. 

Net  Weight,  the  weight  of  any  commodity, 
after  every  deduction  is  made,  and  lor  which 
the  price  is  charged. 

Non  Claim,  is  where  a  creditor  neglects  to 
make  his  claim  within  a  proper  time,  m  which 
case  he  cannot  enforce  his  demand. 

Notary  Public,  a  person  duly  appointed  to 
attest  deeds  and  writings;  he  also  notes  or 
protests  bills  of  exchange,  inland  and  foreign, 
and  promissory  notes,  when  refused  or  re- 
turned. 

Note,  a  memorandum,  or  a  written  order 
for  money. 

Noting,  is  the  act  of  a  notary  when  a  bill 
or  draft  is  not  duly  honored,  or,  in  other 
words,  refused  acceptance  or  payment. 

Obligation,  is  a  bond  containing  a  penalty 
with  a  condition  annexed,  either  lor  the  pay- 
ment of  money,  performance  of  covenants, 
or  the  like. 

Obligee,  he  to  whom  a  bond  is  made  pay- 
able. 

Obliger,  the  person  who  enters  into  a  bond, 
or  he  by  whom  it  is  to  be  paid. 

Office,  a  place  where  business  is  transacted. 

Omnium,  a  term  used  among  stock-job- 
bers, to  express  all  the  articles  included  in  the 
contracts  between  government  and  the  origi- 
nal subscribers  to  a  loan. 

Order,  a  direction  from  one  house  to 
another  to  effect  certain  purchases,  &c.  upon 
limited  or  unlimited  conditions. 

Puck  or  Package,  any  quantity  of  goods 
tied  up  for  carriage.  'I'he  latter  term  also 
denotes  the  charge  made  for  lying  up  the 
goods. 

Packer,  a  person  who  carries  on  the 
business  of  packing  goods. 

Par  of  Exchange,  is  the  intrinsic  value  of 
the  n.oney  of  one  country,  compared  with 
that  of  another,  with  respect  both  to  the 
weight  and  fineness. 


Parcel,  a  term  applied  both  to  small  pack- 
ages of  wares,  and  to  large  lots  of  goods.  In 
this  last  sense,  "10  hhds.  of  sugar,  or  more,  if 
bought  at  one  price,  or  in  a  single  lot,  ar^ 
denominated,  "  a  parcel  of  sugar. ' 

Partnership,  is  when  two  or  more  persons 
unite  in  trade,  and  agree  to  participate  in  the 
profits  or  Tosses  according  to  their  respective 
shares  in  the  capital  employed  in  the  concern. 

Part  Owners,  persons  concerned  in  ship- 
matters,  and  who  have  joint  shares  therein. 

Pass  in  Conformity,  or  to  state  in  confor- 
mity, is  to  acknowledge  that  an  account 
transmitted  is  correct. 

Pierage,  money  paid  for  the  support  of  an 
established  pier. 

Policy  of  Assurance,  the  deed  or  instru- 
ment by  which  a  contract  of  assurance  is 
effected. 

Portage,  nioney  paid  for  sailors'  wages 
while  in  port;  also  money  paid  for  the  use  qf 
a  port  in  shipping  or  landing  goods. 

Posting,  in  book-keeping,  is  the  mode  of 
transferring  articles  from  the  journal,  or  the 
subsidiary  books,  to  the  ledger. 

Premium,  the  inoney  paid  an  underwriter 
for  insuring  the  safety  of  ships,  goods, 
houses,  (fee. 

Price  Current,  a  list  of  the  various  articles 
of  merchandise  in  the  market,  with  the 
present  prices  annexed  to  each.  In  most  of 
the  great  commercial  cities  and  towns,  lists 
of  this  description  are  generally  published 
once  or  twice  a  week. 

Principal,  the  capital  sum  due,  or  lent,  in 
opposition  to  interest.  It  also  means  the  head 
of  a  Firm,  or  commercial  house. 

Pro  Forma,  a  term  generally  applied  to  a 
paper  showing  the  terms  or  charges  attending 
any  particular  business,  as  Pro  Forma  Ac- 
count Sales,  &c. 

Promissory  Note,  a  note  of  hand  purporting 
the  payment  of  a  certain  sum,  at  a  stated 
period. 

Protest,  a  paper  made  out  by  a  notary 
public,  declaring  a  bill  has  been  presented  for 
acceptance  or  payment,  and  was  refussed. 

Primage,  so  much  per  cent,  generally  al- 
lowed to  the  captain  of  a  ship  on  the  amount 
of  freight. 

Procuration,  the  power  of  using  the  sig- 
nature of  a  house  on  letters  and  bills. 

Quarantine,  the  time  a  ship  suspected  of 
infection,  is  restricted  from  intercourse  with 
the  shore  ;  also  certain  duties  imposed  on 
ships. 

Quoted  on  board,  means  the  price  for  which 
a  merchant  agrees  to  put  goods  on  board, 
free  of  expenses  of  shipping  to  the  buyer. 

Rebate,  is  an  allowance  in  the  purchase  of 
goods,  for  prompt  payment. 

Receipt,  an  acknowledgment  in  writing  of 
having  received  a  sum  of  money,  or  other 
value;  and  is  either  a  voucher  for  an  obliga- 
tion discharged,  or  one  incurred. 

Respondentia,  a  contract  by  vdrich  money 
is  borrowed  on  the  security  of  goods  and 
merchandise,  the  same  as  in  bottomry  on  the 
security  of  a  ship. 

Reslitution,  is  that  when  money  has  been 
paid  wrongfully  or  by  mistake,  the  person  so 
paying  has  a  right  to  demand  it  back. 


KXPLANATION  OF  COMMERCIAL  TERMS. 


191 


Retail,  is  a  dealing  in  commodities,  in  small 
quantities. 

Returns,  a  term  expressing  the  value  in 
goods  or  in  money,  returned  by  the  consignee 
of  a  cargo  or  parcel  of  goods  to  the  con- 
signer :  the  term  also  means,  a  return  or  re- 
mittance of  bills. 

Return  of  Premium,  the  whole  or  part  of 
the  premium  of  an  insurance  which  is  given 
back  in  terms  of  the  Policy. 

Retiiiltance,  a  sum  of  money  sent  either  in 
bills  of  exchange,  or  otherwise,  from  one 
house  to  another. 

Reneioal  of  a  Bill,  is  the  cancelling  a  bill 
or  promissory  note  due,  and  accepting  another 
at  a  given  date  in  lieu  thereof. 

Sample,  a  small  quantity  of  an  article  at  a 
public  or  private  sale,  as  a  specimen  of  the 
commodity. 

Salvage,  a  certain  allowance  due  to  those, 
through  whose  instrumentality  property  is 
saved  from  the  perils  of  the  seas,  enemies, 
&c. 

Schedule,  in  commerce,  the  statement  of  a 
bankrupt's  affairs,  delivered  by  him  to  the 
commissioners  appointed  to  investigate  his 
case. 

SearcJier,  an  officer  of  the  custom-house, 
whose  business  is  to  search  all  ships  outward 
bound,  to  see  whether  any  prohibited  or  un- 
customed goods  are  on  board. 

Sea-vcorthij ,  is  when  a  ship  is,  in  every 
respect,  fitted  for  her  destined  voyage. 

Seizure,  an  arrest  of  some  merchandise, 
movable  or  other  matter,  either  in  conse- 
quence of  some  law,  or  jpxpress  order  of  the 
government. 

Set  off  of  Mutual  Debts,  is  where  trades- 
men are  mutually  indebted,  one  debt  may  be 
set  against  the  other ;  and  in  case  any  action 
be  brought,  notice  is  to  be  giveu  of  the  par-  > 
ticular  sum  or  debt  intended  to  be  set  off 
against  another.  j 

Smuggling,  the  act  of  importing  or  ex-  j 
porting  goods  without  payment  of  the  cus-  j 
toms,  or  excise  duties. 

SolidUy,  the  character  which  a  mercantile 
house  bears  as  to  property.  j 


Staple  Goods,  such  as  are  sold  at  a  staple ; 
or,  the  principal  produce  of  a  country  5  and 
also,  goods  not  being  liable  to  perish,  as  wood; 
lead,  iron,  &c. 

Slock,  a  fund  raised  by  a  commercial  com- 
pany to  be  employed  in  trade  j  in  book-keep- 
ing, it  denotes  tlie  owner,  or  owners  of  the 
books.  Stocks  is  a  terra  likewise  applied  to 
the  capitals  of  banks. 

Surety,  is  when  one  person  becomes  bound 
that  another  shall  pay  a  certain  debt,  or  per- 
form a  certain  act. 

Tally,  a  cleft  piece  of  wood  to  score  any 
account  or  reckoning  upon. 

Tai-e,  an  allowance  for  the  weight  of  the 
bag,  box,  Ccisk,  or  other  package  in  which 
the  goods  are  packed  up. 

Tariff,  a  table  or  catalogue  containing  the 
names  of  different  kinds  of  merchandise,  with 
the  duties  to  be  paid. 

Tellers,  clerks  in  public  offices,  who  reckon, 
receive,  and  pay  money. 

Tidewaiters,  officers  employed  to  see  the 
loading  and  unloading  of  ships,  in  order  to 
prevent  contraband  trade. 

Tonnage,  the  admeasurement  of  a  ship,  by 
which  she  pays  the  tonnage  duty;  or  it  is  her 
actual  capacity  for  stowage,  and  is  in  that 
case  not  unfrequently  called  her  burthen. 

Trustee,  a  person  who  has  an  estate,  or 
money,  put  or  trusted  in  his  hands  for  the  use 
of  another. 

Umpire,  when  two  arbitrators  cannot  agree 
in  settling  a  dispute,  a  third  person  is  named, 
who  is  called  an  umpire,  and  whose  decision 
is  binding. 

Underwriters,  (persons  who  insure  ships, 
cargoes,  yr  other  risks,  which  is  performed 
by  writing  their  names  under  a  policy  of  in- 
surance. 

^ury,  consists  in  taking  more  than  legal 
interest  for  the  loan  of  money. 

Value,  to  value,  in  a  mercantile  sense,  is  to 
draw  a  bill ;  the  words  "  value  received,"  or 
"  value  in  account,"  are  always  mentioned  in 
every  bill  of  exchange. 

Wharfage,  money  paid  for  the  use  of  a 
wharf. 


EQUATION  OF  PAYMENTS 


AVERAGE  TIMES  OF  PAYMENT 


To  find  the  average  time  at  which  several  sums  of  money  due  at 
different  periods  may  be  paid,  so  that  no  loss  shall  be  sustained  by 
either  the  debtor  or  creditor,  is  called  Equating^  or  reducing  the  times 
of  payment  to  one.     For  example : — 

A.  owes  B.  $440,  whereof  $200  is  payable  ^p  2  years,  $160  is 
payable  in  3J  years,  and  the  balance,  $8(3,  is  payable  in  4J  years. 
Now  at  what  period  me^  B.  receive  the  whole  Amount,  so  that  the 
interest  accruing  on  the  sunis  jvhich  are  overdue,  may  be  counter- 
balanced by  the  discount  on'tlfe  sums  which  are  not  yet  due? 

The  sum  due  at  the  end  of  the  first  period,  if  not  paid  till  the  last 
period,  will  have  the  interest  accruing  on  it  during  the  intermediate 
time.  The  sum  due  at  the  second  period,  if  not  paid  till  the  last, 
will  likewise  have  the  interest  accruing  upon  it  during  the  interval 
between  the  second  and  last  period ;  and  so  on.  Now  these  several 
interests  added  together,  will  give  the  whole  interest,  if  all  the  money 
were  to  be  paid  at  the  last  period.  But  this  would  not  fulfil  the 
intended  purpose,  which  is  to  discover  a  precise  intermediate  time, 
at  which  the  interest  due  upon  the  portions  payable  before  that  time, 
would  amount  to  the  same  sum  as  the  discount  receivable  upon  the 
portions  payable  after  that  time.  By  calculating  interest  upon  the 
different  portions,  from  the  various  periods  of  payment  up  to  the  day 
when  the  last  sum  is  due,  we  have  found  what  amount  of  principal 
and  interest  would  be  due  if  the  whole  debt  were  to  be  discharged  at 
that  period.  To  fulfil  the  intended  purpose  and  annul  the  interest, 
we  must  ascertain  what  number  of  days'  interest  upon  the  entire 
principal  will  equal  the  aggregate  interest  upon  the  individual 
sums;  and  anticipating  by  that  number  of  days  the  time  at  which 
the  last  payment  will  be  due,  we  ascertain  precisely  the  period 
at  which  the  interest  due  upon  the  portions  forborne  is  equal  to  the 
discount  receivable  upon  the  portions  anticipated  ;  in  other  words,  we 


EQUATION  OF  PAYMENTS.  193 

have  discovered  the  equation  of  payment.     For  this  purpose  men  of 
business  use  the  following  general 

RULE. 

Multiply  the  amount  of  each  debt  hy  the  time  it  has  to  run  till  it 
becomes  due,  and  divide  the  sum  of  the  products  by  the  amount  of  the 
debt;  the  quotient  is  the  average  or  equated  time  of  payment. 

Thus  the  equated  time  of  payment  in  the  preceding  example  is 
ascertained  as  follows  : — 

200  multiplied  by  2    gives  400 
160         "  "    3J     "      560 

80         "  ''    4|     "      360 

440=^moM«^  of  the  debt.  1 ,320=Sum  of  the  products. 

Then  1,320  divided  by  440  gives  3  years,  which  is  the  equated  oi 
average  time  of  payment. 

Illustration. — Suppose  the  interest  to  be  calculated  at  6  per  cent,  and  that  three 
years  is  the  true  equated  time,  as  above;  it  is  evident  that  A.  gains  the  interest  of 
$200  for  one  year,  which  is  $12,  by  extending  the  term  of  payment  to  three  years 
instead  of  two ;  and  that  he  loses  the  interest  of  $160  for  half  a  year,  and  the 
interest  of  $80  for  one  year  and  a  half,  by  paying  these  sums  before  they  become 
due,  which  interests  added  together,  make  $12.  Thus  his  gain  and  loss,  on  this 
consideration,  appear  to  be  equal.  But  we  must  recollect,  that  B.  is  not  entitled  to 
the  interest  of  $160  for  half  a  year,  and  of  $80  for  one  and  a  half  years,  but  to  the 
discount  of  each  of  these  sums.  The  rule  therefore  is  not  mathematically  correct, 
but  it  affords  an  approximation  exact  enough  to  the  truth,  for  all  practical  purposes 
to  which  it  can  be  applied,  and  being  easy,  is  generally  used  by  accountants  and 
men  of  business. 


Example  II. 

Bought  goods  payable  as  follows,  viz: — 850  on  the  1st  of  May; 
$64  on  the  4th  of  June;  $86  on  the  1st  of  August,  and  $90  on  the 
5th  of  September; — required  the  equated  time  for  paying  the  whole 
sum  once  ]  Ans.  July  14th. 

May  1st,  $50— due  at  this  date.* 
June  4th,    64  X    34  days  =    2,176 
Aug.  1st,     86  X    92    "     —    7,912 
Sept.  5th,    90X127    "     =11,430 


290  21,518  -H  290  =  74  days. 

J  sur 
4  d; 
equated  time. 

*  The  equated  timo  may  be  found  by  reckoning  cither  from  the  present  period,  or  from  the  time 
that  the  fust  payment  becomes  duo.  In  the  latter  case  the  time  or  multiplier  of  the  first  payment  is. 
nothing. 

25 


—  — ,  —    ,    —        ._  — J  _ . 

21,518,  the  sum  of  the  products,  divided  by  290,  the  amount  of  the 
debts,  gives  74  days  from  the  first  of  May,  which  is  July  14th,  the 


194  EQUATION  OF  PAYMENTS. 


CASE    ll. 

When  goods  are  purchased  at  different  periods,  but  at  the  same 
length  of  credit. 

Rule. — Multiply  the  amount  of  each  purchase  (except  the  last)  by 
the  number  of  days  from  its  date,  to  the  date  of  the  last  purchase,  and 
divide  the  sum  of  their  products  by  the  sum  of  the  purchases  ;  the 
answer  will  be  in  days.  Subtract  the  number  of  days,  thus  found, 
from  the  date  of  the  last  purchase,  and  the  time  will  be  carried  back  to 
the  period  of  equation. 

JVo«e.— The  day  from  which  you  compute,  is  not  reckoned ;  but  the  day  to  which  you  compute,  is 
always  included. 

Example. 

Bought  goods  as  follows  at  six  months'  credit ;  what  is  the  equated 
timb  of  payment? 

Dates.         Amounts.    Days.    Products. 

May  1st  $  50  X  26=  1,300 
"  12th  150X15  =  2,250 
"  19th  120  X  8=  960 
"    27th     100  X 


420  4,510 

4,510-7-420=11  days,  nearly ^  which  subtracted  from  May  27th  will 
carry  the  time  back  to  the  16th  of  that  month,  the  period  at  which  a 
note  payable  in  six  months  should  be  dated. 

The  same  principle  will  apply  in  equating  the  payment  of  accounts, 
a  part  of  which  is  past  due,  the  other  part  at  a  future  day. 

Example. 

I  have  the  following  account  against  A.  B.  which  he  wishes  to  settle 
June  10th  ;   required  the  equated  time  of  payment. 


Dates. 

February  2, 
March      4, 
May        10, 

August     7, 
Sept.        8, 

.^mounts.    Days. 

was  due       $70X218  = 

50X188  = 

60X121  = 

will  be  due  40  X    32  = 

"       "       30 

250 

lys,  nearly,  which,  subtrf 

Products. 

=  15,260 

=   9,400 

7,260 

1,280 

250=  133  d; 

33,200 

icted  from  the  8th  of 

33,200 

September,  will  carry  the  time  back  to  the  28th  of  April ;  and  A.  B. 
must  allow  interest  on  $250  from  that  time  to  the  10th  of  June,  being 
43  days. 


EQUATION  OF  PAYMENTS,  195 

Another  method  of  equating  the  payment  of  debts  contracted  at  dif- 
ferent periods,  but  at  the  same  credit,  is  to  find  the  number  of  days 
from  the  first  purchase  to  the  second.  Multiply  the  second  purcliase 
by  that  number  of  days.  Proceed  in  the  same  manner  with  respect  to 
the  third,  and  whatever  other  number  of  purchases  there  may  be  ; 
divide  the  sum  of  their  products  by  the  amount  of  purchases,  and  the 
quotient  will  be  days.  Add  the  number  of  days  thus  found  to  the  date 
of  the  first  purchase,  and  the  time  will  be  cmrned  forward  to  the  period 
of  equation.  The  correctness  of  this  principle  will  be  tested  by  worst- 
ing the  first  example  under  this  case. 

May    1,  $  50 
"     12,      150X11  =  1,650 
"     19,      120X18  =  2,160 
"    27,     100X26  =  2,600 

6,4l0-^  420  =  15ii  days, 

which,  added  to  the  1st  of  May,  carries  forward  the  period  of  equation 
to  the  16th  of  that  month. 

Proof. — Multiply  the  amount  of  each  purchase  made  before  the 
equated  time,  by  the  number  of  days  from  its  date  to  the  equated  time. 
Multiply,  also,  separately,  the  amount  of  each  purchase  made  after 
the  equated  time,  by  the  number  of  days  from  the  period  of  equation  to 
the  time  it  was  made,  and  if  the  sum  of  the  former  products  be  equal 
to  the  latter,  the  work  is  right,  as  is  shown  in  the  following  operation. 

$50X15^  =  763^     120  X    2f^=     328fi- 
$150  X    4H  =  639if     100Xl0i|=l,073it         ^rr 


1,4021^  1,402^1 

The  foregoing  illustration  is  thought  to  be  so  apparent,  that  any 
further  explanation  is  unnecessary. 


CASE    III. 

When  goods   are  purchased  at  different  periods  and  at  different 
terms  of  credit. 

Rule. — Find  the  time  when  each  amount  becomes  due,  from  which 
make  an  equation  as  in  Case  II. 

Example. 

Bought  goods  as  follows  : — What  is  the  equated  time  of  payment  for 
the  whole  amount?  Ans.    July  4th. 

Date.  .Amount.        Terms. 

February    1,  $100  at  120  days 
February  15,     150  "    90     " 
May  7,       70  "    60     " 

August     12,       90  "    80    " 


196  EQUATION  OF  PAYMENTS. 

Statement. 
The  purchase  made 

February  15,  is  due  May  16,  |150 

1,       "      June   1,      100  X    16=    1,600 
May  7,       "      July    6,        70x    51=    3,570 

August     12,      "      Oct.  31,       90X168=15,120 

410  20,290 

20,290  -^  410  =  49f  f  days  from  May  16,  which  will  bring  the  equated 
time  to  July  4. 

CASE    IV. 

When  goods  are  bought  at  a  given  credit ,  and  partial  payments  are 
made  before  the  expiration  of  the  stipulated  term  of  credit,  to  know 
how  long  the  balance  may  run  to  cancel  the  interest  on  the  payments 
made  before  maturity. 

Rule. — First.  Multiply  the  whole  debt  by  the  term  of  credit  given. 
Second.  Multiply  each  payment  made  before  maturity,  by  the  time  it 
has  run  from  the  date  of  purchase,  and  subtract  the  amount  of  their 
products  from  the  product  arising  from  the  whole  debt  multiplied  by 
the  term  of  credit.  Divide  the  remainder  by  the  balance  due  at  the 
expiration  of  the  term  of  credit,  and  the  quotient  will  show  the  number 
of  days  that  this  balance  may  run  from  the  time  the  sale  was  made. 

Example. 

Bought  goods  amounting  to  $2,500  at  12  months'  credit ;  at  the 
end  of  three  months,  there  was  paid  $400  ;  at  the  end  of  six  months, 
$500,  and  at  the  end  of  eight  months,  $200  j  when  will  the  balance 
of  $1,400  become  due? 

2,500  X  12  =  30,000 
400X3=1,200 


500  X  6  =  3,000 
200X8=1,600  5,800 


5,800  24,200  -r- 1,400=  17f  months 

1,400  X  17f  =  24,200 


Proof.     30,000 


CASE    V. 


To  equate  an  account  when  there  is  a  debit  and  credit  of  different 
amounts,  and  the  total  of  each  due  at  different  periods,  so  that 
neither  the  debtor  or  creditor  shall  be  entitled  to  any  balance  of  in- 
terest. 

Rule.— Find  the  number  of  days  from  the  equated  time  that  the 
first  debt  is  due,  to  the  period  when  the  last  is  payable  ;    multiply  the 


EQUATION  OF  PAYMENTS.  '  197 

amount  that  becomes  last  due  by  this  difference  of  time,  and  divide  the 
product  by  the  balance  of  the  respective  debts,  the  quotient  will  be 
days;  and  if  the  sum  multiplied  be  the  greater  amount,  add  the  num- 
ber of  days  so  found  to  the  date  of  the  debt  that  first  becomes  payable  : 
but  if  it  be  the  smaller  amount,  subtract  the  number  of  days  found 
from  the  time  that  the  debt  first  due  became  payable. 


Example  I. 

I  have  an  account  with  A.  B.  the  Dr.  side  of  which  is  $800,  due 
by  equation  May  16,  and  the  Cr.  side  is  $600,  due  May  1.  When 
can  the  balance  be  paid  without  loss  of  interest  to  either  party  ? 

Ans.     June  30. 

Statement. 

800  X  15  =  12,000  -r-  200  =  60  days  from  the  1st  of  May,  which 
will  be  June  30. 

From  May  16,  it  will  be  45  days,  and  $800  X  45  =  $600  X  60, 
both  being  3,600 ;  hence  it  appears,  that  my  being  indebted  to  A.  B. 
in  the  sum  of  $600  for  60  days,  is  equal  to  his  being  indebted  to  me 
in  the  sum  of  $800  for  45  days. 


Example  II. 

C.  D.  owes  me  $600,  which  is  due  May  16,  and  I  owe  him  $800, 
which  is  due  May  1.  When  must  I  pay  C.  D.  the  balance,  $200, 
without  either  party  being  entitled  to  interest  ? 

Ans.     March  17. 


Statement. 

X  15  =  9,000 -h  200  =  45  days,  which,  subtracted   from  the 
1st  of  May,  will  carry  the  time  back  to  the  17th  of  March. 

In  this  case,  the  amount  of  C.  D.'s  credit  being  greater  than  the 
amount  of  my  debit,  and  being  first  payable,  it  is  evident  that  interest 
will  accrue  from  the  1st  to  the  16th  of  May  on  the  amount  of  his 
credit,  after  which  he  will  be  entitled  to  the  interest  on  $200  more 
than  I  shall,  so  long  as  the  accounts  from  that  time  remain  unsettled  ; 
consequently,  the  longer  the  accounts  run  after  the  time  of  payment, 
the  greater  will  be  the  balance  of  interest  in  C.  D.'s  favor.  But  if  the 
accounts  be  settled  on  the  17th  of  March,  I  shall  pay  C.  D.  $800,  45 
days  before  it  is  due,  and  he  will  pay  me  $600,  60  days  before  it 
becomes  payable,  and  the  interest  of  both  amounts  for  the  time  that 
they  are  paid  in  advance  will  be  equal. 


198  EQUATION  OF  PAYMENTS. 

The  following  method  of  ascertaining  the  equated  time  at  which  the 
balance  of  an  account-current  is  payable,  is  not  essentially  different 
from  that  given  in  Case  V.  Yet,  in  some  respects,  it  is  more  con- 
venient, and  therefore  may  be  preferred. 

Rule. — First.  Find  the  equated  time  of  the  Dr.  and  Cr.  side,  as 
before.  Second.  Multiply  the  smallest  sum  by  the  number  of  days 
between  the  dates,  thus  found,  and  divide  the  product  by  the  balance 
of  the  account ;  the  quotient  is  the  number  of  days  to  be  carried  back 
or  forward,  as  the  case  may  require.  Q;/^  If  the  balance  be  on  the 
side  of  the  earliest  date,  subtract  the  quotient,  or  count  back  from 
that  date  ;  if  on  the  side  of  the  latest  date,  add  the  quotient  or  count 
forward  from  that  date. 

Example  I. 

E.  F.  owes  me,  for  goods  purchased  at  different  periods,  $600, 
which  is  due,  by  equation,  May  1  ;  and,  I  have  bought  of  him,  at 
different  dates,  goods  to  the  amount  of  $800,  which  is  due,  by  equa- 
tion, May  16.  When  shall  I  pay  the  balance  so  that  neither  party 
shall  be  entitled  to  interest?  Ans.     June  30. 

Statement. 

$600  the  smaller  sum. 

15  days,  the  difference  of  dates. 

Balance,  200  )  9,000  (  45,  the  quotient. 
9,000 

The  balance  in  this  example  is  on  the  side  of  the  latest  date,  there- 
fore, add  the  quotient,  or  count  forward  45  days  from  May  16,  which 
brings  the  equated  time  to  June  30. 

Proof     From  May  16  to  June  30  is  45  days  X  800  =  3,600 
From  May     1  to  June  30  is  60  days  X  600  =  3,600 

Example  II. 

When  will  the  balance  of  the  following  account  become  payable  so 
that  neither  party  shall  be  entitled  to  interest?  Ans.  March  17. 

^Dr.—  G.  H.  — Cr.— 

When  due.  When  due. 

May  1.     To  Sundries,  $800.  May  16.     By  Cash,  $600. 

Statement. 

$600  X  15  =  9,000  -j-  200  =  45  days,  subtracted  from  the  1st  of 
May  will  carry  the  time  back  to  the  17th  of  March. 

Proof     $800  X  45  =  36,000 
X  60  =  36,000 


EQUATION  OF  PAYMENTS, 


199 


The  preceding  examples,  it  is  thought,  will  be  a  sufficient  guide 
to  work  any  question  that  may  arise  under  this  case,  but  with  a  view 
of  exercising  the  learner,  the  following  example  is  given. 


Example  III. 

Equate  the  time  of  payment  of  the  debit  and  credit  sides  of  the  fol- 
lowing account,  and  state  when  the  balance  becomes  due,  so  that 
neither  party  shall  be  entitled  to  interest. 

—Dr.--  A.  B. 

May    6,    To  amount  due  this  day^  $600 

"     27,  "  "  700 

June  11,  "  "  500 


—Cr.— 
May  12,  By  Cash,  $450 
"     29, 


600 


June  15. 


300 


$1,800 


$1,^550 


600 

700  X  21  r=  14,700 

500  X  36  =  18,000 


32,700 -^  1,800  =18  days  from  the  6th  of 
May,  will  carry  the  time  forward  to  the  24th  of  that  month. 

450 

600  X  17  =  10,200 

300  X  34  =  10,200 


20,400  H-  1,350  =  15  days  from  the  12th  of 
May,  will  carry  the  time  forward  to  the  27th  of  that  month. 

—Dr.—  —Cr.— 

May2i,  $1,800.  May  27,  $1,350 

1,350  X  3  =  4,050  -^  450  =  9  days,  which  subtracted  from  the  24th 
of  May  will  carry  the  time  back  to  the  15th  of  the  same  month. 

JVote.    In  the  equation  of  payments,  when  the  sums  are  composed  of  dollars  and  cents,  the  cents, 
if  under  50,  are  omitted,  and  if  over  50  they  are  counted  as  one  dollar. 


200 


TABLE    OF    TIME. 


TABIiE, 


SHOWING  THE  NUMBER  OP  DAYS  FROM  ANY  DAY  IN  ONE  MONTH,  TO  THE 
SAME  DAY  IN  ANOTHER  MONTH. 


To  05- 

Jan. 

Feb. 

Mar. 

April. 

May. 

June. 

July. 

Aug. 

Sept 

Oct 

Nov. 

Dec. 

From 

January.... 

365 

31 

59 

90 

120 

151 

181 

212 

243 

273 

;]0l 

aj4 

February .. 

334 

365 

28 

59 

89 

120 

150 

181 

212 

242 

273 

303 

March 

306 

337 

365 

31 

61 

92 

122 

153 

184 

214 

245 

275 

April 

275 

306 

334 

365 

30 

61 

91 

122 

153 

183 

214 

244 

jyfav 

245 

276 

304 

335 

365 

31 

61 

92 

123 

153 

184 

214 

June.. 

214 

245 

273 

304 

334 

365 

30 

61 

92 

122 

153 

183 

1 

July 

184 

215 

243 

274 

304 

335 

365 

31 

62 

92 
61 

123 

92 

153 
122 

August 

153 

184 

212 

243 

273 

304 

334 

365 

31 

September . 

122 

153 

181 

212 

242 

273 

303 

334 

365 

30 

61 

91 

October 

92 

123 

151 

182 

212 

243 

273 

304 

335 

365 

31 

61 

JVovember.. 

61 

92 

120 

151 

181 

212 

242 

273 

304 

334 

365 

30 

December.. 

31 

62 

90 

121 

151 

182 

212 

243 

274 

304 

335 

365 

Explanation. — The  months  counted  From,  are  arranged  in  the  left  hand 
vertical  column ; — those  counted  To,  are  in  the  upper  horizontal  line ; — the  days 
between  those  periods  are  found  in  the  angle  of  intersection,  in  the  same  way  as 
in  a  common  multiplication  table.  If  the  end  of  February  be  included  between 
the  two  points  of  time,  a  day  must  be  added,  in  leap  years. 

Suppose  it  were  required  to  know  the  number  of  days  from  the  4th  of  March  to 
the  15th  of  August.  In  the  horizontal  line  marked  March,  and  in  the  column 
under  August,  we  find  153,  which  is  the  number  of  days  from  the  4th  (or  any 
other)  day  of  March,  to  the  4th  (or  same)  day  of  August;  but,  as  we  want  the 
time  to  the  15th  of  August,  11  days  (the  difference  between  4  and  15)  must  be 
added  to  153,  which  shows  that  164  is  the  number  of  days  between  the  4th  of 
March  and  the  15th  of  August. 

Again,  were  the  number  of  days  required  between  the  10th  of  October  and  the 
3d  of  June,  in  the  following  year : — Opposite  to  October  and  under  June  we  find 
243,  which  is  the  number  of  days  from  the  10th  of  October  to  the  lOth  of  Junej 
but  as  we  sought  the  time  to  the  3d  only,  which  is  7  days  earlier,  we  must  deduct 
7  from  243,  leaving  236,  the  number  of  days  required, — and  so  of  others. 

The  above  table  will  be  found  very  useful  in  the  equating  the  time  of  payments, 
calculating  interest,  &c.  and  if  not  the  best,  is  certainly  the  most  concise  that  has 
yet  appeared  on  the  subject. 


PROSPECTUS 


OF   THE 


COMMERCIAL  ACADEMY, 


NO.    183    BROADWAY, 


NEW   YORK. 


CONDUCTED 

BY  B.  F.  FOSTER, 

AUTHOR   OF   THE    ART    OF    RAPID    WRITING    ILLUSTRATED    AND    EXPLAINED  J 

A    CONCISE   TREATISE    ON   BOOK-KEEPING  J    ELEMENTARY    COPY   BOOKS  J 

COMMERCIAL    CORRESPONDENCE,   &C. 


NEW    YORK 

1  837. 


Book-keeping  is  an  art  which  no  condition  of  life  can  render 
useless,  and  which  must  contribute  to  the  advancement  of  all  who 
buy  or  sell — of  all  who  wish  to  keep  or  improve  their  possessions — 
of  all  who  desire  to  be  rich,  and  all  who  desire  to  be  wise.  Let  no 
man  enter  into  business  while  he  is  ignorant  of  the  method  of  regu- 
lating books. — Dr.  Johnson. 


PROSPECTUS 


The  design  of  Foster's  Commercial  Academy  is  to  afford 
young  men  an  opportunity  of  acquiring,  in  a  short  period,  a 
frecj  rapid  hand-writing ;  experiness  in  Jigures ;  a  practical 
knowledge  of  book-keeping ;  merchants'  accounts;  and  mercantile 
letter-writing.  These  branches,  independently  of  their  intrinsic 
importance,  conduce  most  effectually  to  advancement  in  any 
mercantile  situation. 

Classical  and  mathematical  education  is  for  the  most  part 
carefully  attended  to,  in  addition  to  which,  the  lawyer,  the  phy- 
sician, and  the  clergyman,  each  devotes  years  in  preparing 
himself  for  the  peculiar  practice  of  his  profession ;  but  the 
young  man,  intended  for  a  merchant,  is  left  to  grope  his  way,  so 
far  as  a  prior  qualification  is  concerned,  in  comparative  igno- 
rance. When  placed  in  the  counting-house  the  youth  enters  a 
school,  with  this  disadvantage,  that  he  is  without  an  instructor ; 
for  it  is  neither  the  duty  nor  interest  of  the  senior  clerks  to 
deviate  from  the  routine  of  their  own  labors  to  impart  that  infor- 
mation which  may  enable  another  to  supersede  themselves  ;  and 
the  merchant  himself  is  generally  too  much  occupied  with  busi- 
ness to  take  the  trouble ;  hence,  the  young  clerk  has  to  pick  up 
his  knowledge  as  he  can,  and  gets  into  the  way  of  performing 
his  duties  by  dint  of  repetition  only. 


4  PROSPECTUS. 

There  are  probably  thousands  who  yearly  visit  this  city,  for 
the  purpose  of  devoting  themselves  to  mercantile  pursuits,  whose 
Penmanship  is  totally  unfit  for  the  Journal,  the  Ledger,  or  even 
for  a  common  Bill  of  Parcels,  and  whose  knowledge  of  figures 
and  book-keeping  is  so  limited  that  they  can  neither  calculate 
the  interest  on  an  account-current,  equate  a  payment,  nor  record 
a  simple  transaction  accurately.  For  the  want  of  this  requisite 
information,  they  are  compelled  to  drudge,  for  years,  in  subor- 
dinate situations ;  whereas  had  they  been  previously  qualified, 
with  special  reference  to  this  employment,  they  would  have  freely 
commanded  a  liberal  salary. 

The  advantages  of  this  institution,  although  available  to  all 
classes,  are  yet  more  particularly  held  out  to  the  following  : — 

1.  To  young  men  who  have  completed  their  classical  and 
general  education,  and  who  wish  to  acquire  rapidly,  those  quali- 
fications which  are  especially  requisite  for  commerce. 

2.  To  young  persons  whose  friends  are  desirous  that  they 
should  receive  the  practical  advantages  here  offered,  in  addition 
to  those  they  may  have  acquired  at  school. 

3.  To  foreign  gentlemen  desirous  of  becoming  well  acquainted 
with  the  language  and  commerce  of  the  country.  This  class 
may,  while  they  are  enlarging  their  mercantile  and  general 
knowledge,  obtain  an  intimate  acquaintance  with  the  English 
language. 

4.  Adults,  who  experience  any  difl5culty  in  the  free  use  and 
command  of  the  pen,  or,  those  who,  from  inattention,  or  the 
want  of  proper  instruction,  write  an  irregular  scrawl,  may  have 
these  obstacles  removed  in  a  few  lessons,  so  as  to  ^rite  a  rapid, 
easy  hand. 


PROSPECTUS.  O 

The  course  of  instruction  at  this  institution,  comprehends  all 
the  information  connected  with  the  duties  of  a  clerk,  and  is 
peculiarly  adapted  to  the  wants  of  the  mercantile  community. 

Penmanship  is  taught  upon  a  novel  and  improved  plan, 
combining  legibility  with  ease  and  rapidity  of  execution.  Mii. 
Foster  has  given  the  most  careful  attention  to  the  various  causes 
which  occasion  bad  writing,  and  is  consequently  desirous  that 
this  establishment  may  be  viewed  as  a  complete  school  for 
penmanship  on  undisputed  principles,  and  as  a  harrier  against 
the  vague  and  improper  encroachments  of  assumed  talent  so 
often  pressed  upon  the  notice  of  the  public. 

Book-keeping,  as  applied  to  inland  and  foreign  trade,  is 
particularly  attended  to,  and  the  most  modern  and  approved 
methods  exemplified,  of  arranging  and  classifying  merchants' 
accounts.  By  divesting  this  study  of  numerous  intricate  terms 
and  complicated  entries  too  commonly  adopted,  the  art  is  so 
simplified,  that  its  principles  are  easily  comprehended  ;  while 
their  application  to  the  ordinary  transactions  in  trade  is  rendered 
apparent. 

The  subject  of  closing  and  re-opening  books  ;  balancing  and 
adjusting  individual  and  partnership  concerns,  is  fully  explained. 
By  connecting  systematic  book-keeping  with  actual  transactions, 
the  forms  and  modes  of  business  are  made  familiar  to  the 
learner ;  and  the  knowledge  thereby  acquired  is  not  only  theo- 
retical but  practical. 

Commercial  Arithmetic,  with  its  application  to  the  exist- 
ing practices  of  trade,  showing  the  abbreviated  methods  employed 
by  merchants  and  brokers  for  the  valuations  and  allowances  of 
merchandise  ;  the  calculations  of  per  centages,  interest,  commis- 
sions, exchanges,  equation  of  payments,  &c.  forms  a  prominent 
feature  in  the  course  of  instruction. 


b  PROSPECTUS. 

Mercantile  Correspondence. — This  department  of  instruc- 
tion has  been  so  long  needed,  that  it  would  be  useless  to  enlarge 
upon  its  utility.  It  will  embrace  every  particular  relating  to 
commercial  letter-writing y  including  all  the  details  of  folding, 
superscribing,  &c. 

Mr.  Foster  wishes  it  to  be  distinctly  understood,  that  he  does 
not  profess  to  **  perfect  pupils  in  twelve  easy  lessons  of  one  hour 
each "  !  He  cannot  limit  himself  to  a  precise  number  of 
lessons,  as  the  successful  attainment  of  an  art  must,  in  every 
instance,  depend  materially  upon  the  capacity,  attention,  indus- 
try, and  perseverance  of  the  learner.  In  order,  however,  to 
enable  young  men  to  complete  their  studies  efficiently,  and  in 
the  shortest  possible  time,  in  addition  to  his  own  personal  efforts, 
experienced  and  competent  assistants  are  engaged.  The  division 
of  labor  in  this  institution  is  so  nicely  carried  out,  and  the  adjust- 
ment of  the  various  parts  so  complete,  that  they  cannot  fail  to 
produce,  without  loss  of  time,  a  sound  and  finished  mercantile 
education. 


This,  then,  in  brief,  is  the  outline  of  the  plan,  upon  which 
Foster's  Commercial  Academy  is  conducted  ;  the  extensive 
support  it  has  hitherto  received,  from  the  mercantile  commu- 
nity in  particular,  and  the  public  in  general,  has  called  forth 
renewed  efforts  to  render  it,  in  every  respect,  worthy  the  attention 
of  those  for  whose  improvement  and  benefit  it  is  designed,  and 
no  labor  or  expense  will  be  spared  to  qualify  young  men  to  fulfil 
the  duties  of  the  counting-house  with  credit  to  themselves  and 
satisfaction  to  their  employers. 


RULES  AND  REGULATIONS. 


1.  The  TERMS  are  payable  at  entrance,  namely,  on  taking  the  first  lesson  : 
from  this  rule  there  can  be  no  deviation. 

2.  The  hours  of  instruction  are  from  9  to  12  in  the  morning ;  from  2  to  5 
in  the  afternoon,  and  from  7  to  9  o'clock  in  the  evening. 

3.  In  all  well  regulated  establishments  strict  order  and  decorum  are  ob- 
served ;  every  member  attends  to  his  own  duties  without  in  any  way  inter- 
fering with  the  other  clerks ;  and,  as  this  institution  is  preparatory  to  the 
counting-house,  and  is  conducted  on  similar  principles,  it  is  earnestly 
requested  that  all  necessary  conversation,  during  the  hours  of  instruction,  be 
carried  on  in  an  under  tone. 

4.  The  students,  at  this  institution,  being  governed  by  the  principles  of 
honor,  it  is  only  considered  necessary  to  suggest  what  is  required  of  them 
to  insure  a  ready  compliance ;  and,  as  these  regulations  are  intended  for 
their  general  good  and  advancement,  they  will,  it  is  not  doubted,  be  rightly 
appreciated. 

T  E  R  xM  S  . 

The  following  branches  are  taught  at  the  prices  affixed,  which  being  paid 
on  entrance,  entitle  the  pupil  to  remain  at  the  Academy  until  he  is  com- 
pleted, without  further  expense,  except  for  books  and  stationary. 

For  a  course  of  Lessons  in  Penmanship,  in  which  the    learner  is  taught 

to  write  a  neat,  rapid  business  hand,  .  .  .  .  .  .  15  00 

For  a  course  of  Lessons  in  Book-keeping,  in   which  the  learner  will  be 

qualified  to  act  as  Book-keeper  in  the  most  extensive  establishment,  .  15  00 

For  a  course  of  Lessons  in  Commercial  Calculations;  by  which  those 
who  have  neglected  their  Arithmetic,  may  acquire  simple  and  expeditious 
methods  of  performing  the  various  computations  in  business,  .  .  15  00 

For  a  course  of  Lessons  in  Letter  Writing  and  General  Correspondence, 
in  which  the  student  will  practise  all  the  modes  and  forms  that  are  in  daily 
use  in  the  Counting  house ;  including  circulars,  letters  of  advice,  notice  of 
consignments,  remittances,  Sec.       .  .  ,  .  .  .  .  15  00 

For  a  course  of  Private  Lessons  in  either  of  the  above  branches  to  one 

individual,  at  the  class  rooms,  or  at  his  residence,  .  .  .  .  25  00 

*^*  The  charge  for  quills  and  ink  is  50  cents  per  quarter. 

[CT  A  limited  number  of  pupils,  under  sixteen  years  of  age,  will  be  re- 
ceived by  the  quarter ;  but  the  institution  is  more  particularly  designed  for 
Young  Men  and  Merchant's  Clerks. 


NEW    WORKS, 

RECENTLY     PUBLISHED, 

And  for  sale  hy  the  Author  at  his  Academy,  183  Broadway^ 
and  by  the  Booksellers  generally. 


1.  A  CONCISE  TREATISE  ON  BOOK-KEEPING  ; 
elucidating  the  Principles  and  Practice  of  Double  Entry  and 
the  modern  methods  of  arranging  merchants'  accounts.  Second 
Edition,  revised,  enlarged,  and  greatly  improved  ; — to  which  is 
added  a  chapter  on  Equation  of  Payments,  &.c.  By  B.  F. 
Foster.     1  vol.  8vo. 

This  is  decidedly  the  best  treatise  on  Book-keeping  which  we  have 
seen.  It  is  simple,  concise,  and  well  arranged.  Mr.  Foster  has  confined 
himself  to  a  plain  explanation  of  the  art,  as  practised  in  mercantile  establish- 
ments, and  we  warmly  recommend  the  residt  of  his  labors  to  the  public. — 
Boston  Atlas. 

This  work  exhibits  a  comprehensive  illustration  of  the  art  as  it  is  prac- 
tised in  well  regulated  counting  houses.  The  author,  who  is  a  practical 
accountant,  has  displayed  an  extensive  knowledge  of  his  subject,  and  has 
produced  a  work  which  is  of  infinite  value  to  those  who  have  yet  to  obtain 
a  knowledge  of  Double  Entry.  In  pointing  out  the  various  methods  by 
which  books  and  accounts  may  he  fraudulently  vitiated,  the  author  has  given 
additional  value  to  his  publication,  and  rendered  an  essential  service  to  the 
mercantile  community. — N.  Y.  Mercantile  Advertiser. 

Here  is  a  new  work  on  a  very  important  subject,  that  is  highly  recom- 
mended by  good  judges.  Its  object  is  to  furnish  a  treatise  simple  in  its  illus- 
trations, and  comprehensive  in  all  the  information  requisite  for  the  practical 
accountant.  The  book  contains  excellent  observations  on  the  studies  and 
qualifications  of  a  merchant,  and  concludes  with  a  glossary  or  explanation  of 
commercial  terms. — Boston  Morning  Post. 

As  the  pursuit  of  money  in  this  country  seems  to  be  the  ruling  desire, 
it  appears  to  us  that  no  work  can  be  offered  to  the  community  generally, 
which  is  related  so  intimately  to  their  prosperity ;  and  it  is  incumbent  on  all 
to  be  acquainted  with  the  principles  and  practice  of  an  art  of  which  this 
work  contains  a  beautiful,  simple  and  consistent  elucidation.  We  recom- 
mend it  to  attention  with  much  sincerity. — Boston  Pearl. 


Foster's  penmanship. 


The  author  of  the  treatise  is  a  teacher  of  unquestionable  ability.  The 
rules  and  directions  for  the  learner  are  full  and  explicit,  and  the  exercises 
have  a  greater  relation  to  real  business  transactions  than  is  usual  with 
elementary  books. — N.  Y.  Herald. 

Although  we  have  had  leisure  only  for  a  hasty  glance  at  this  work,  yet  we 
feel  justified  in  commending  it  to  all  who  are  desirous  of  acquiring  a  thorough 
knowledge  of  a  qualification  so  essential  not  only  to  the  accountant,  but  to 
every  business  man.  The  explanation  of  commercial  terms,  which  occupies 
several  pages,  is  well  worth  the  price  of  the  book.  In  this  treatise,  Mr. 
Foster  has  furnished  ample  proof  of  his  ability  to  give  instruction  in  this 
important  branch  of  commercial  education,  and  we  are  gratified  to  learn  that 
his  rooms  are  well  filled  with  those  who  duly  appreciate  his  talents  as  a 
teacher. — Staten-Islander. 

Tlie  manner  in  which  Book-keeping  is  frequently  taught,  conveys  a  very 
imperfect  idea  of  the  practice  of  merchants.  The  great  difference  between 
tkeorij  and  practice — between  the  study  of  an  art  and  its  application  to  prac- 
tical use,  is  too  well  known  to  need  remark  ;  and  we  think  Mr.  Foster's 
plan  possesses  advantages  worthy  the  consideration  of  all  who  wish  to  ac- 
quire the  forms  and  modes  of  business  in  a  thorough  and  effectual  manner. 
His  long  experience  in  the  counting  house,  and  skill  as  a  penman,  are  cir- 
cumstances which  qualify  Mr.  Foster  in  a  peculiar  manner  for  the  duties  of 
his  profession. — Boston  Evening  Gazette. 

%*  The  design  of  this  work  is  to  exhibit  a  view  of  Book-keeping  as 
actually  practised  among  well  informed  merchants,  and  to  furnish  learners 
with  a  text-hook  so  clear  in  its  illustrations  as  to  be  easily  understood,  and 
yet  so  comprehensive  as  to  afford  all  the  information  requisite  for  the 
practical  accountant.  It  contains  the  latest  improvements  in  the  art,  and 
will  be  found  a  useful  guide  to  the  learner,  the  merchant,  and  the  man  of 
business. 


2.  THE  ART  OF  RAPID  WRITING  ILLUSTRATED 

AND  EXPLAINED ;  to  which  is  added  an  elucidation  of  the 

Angular  and  Anti-Angular  Systems.     By  B.  F.  Foster.     1  vol. 

8vo.,  with  plates. 

The  bold,  flowing,  graceful  writing,  distributed  throughout  this  work,  is 
enough  to  proTC  that  the  author  is  a  skilful  and  competent  teacher.  The 
plan  is  novel,  simple  and  ingenious,  and  admirably  adapted  to  secure  the 
attainment  of  fine  penmanship. — N.  Y.  Evening  Star. 

We  conscientiously  recommend  this  system  to  all  who  are  intrusted  with 
the  education  of  youth,  or  who  feel  a  natural  anxiety  for  the  progress  of 
their  children  in  so  useful  an  accomplishment  as  that  of  penmanship. — 
Boston  Mercantile  Journal. 

Mr.  Foster  pretends  to  teach  that  style  of  writing  which  is  wanted  by 
men  of  business,  and  judging  by  the  fac-simile  in  his  book,  and  by  what  we 
ourselves  have  seen  in  his  school,  we  are  disposed  to  recommend  the  work 
most  heartily,  and  to  place  great  confidence  in  the  teacher. — New  England 
Galaxy. 

The  rules  laid  down  in  this  treatise  aie  sound,  and  if  duly  followed  out, 
will  lead  to  excellence. — New  York  American. 

There  is  nothing  wanting  in  this  new  system  to  insure  to  a  pupil  of 
ordinary  capacity,  the  acquisition  of  a  hand- writing  in  which  the  utmost 

2 


10  Foster's  copy  books. 


legibility,  expedition  and  elegance  are  united.     It  is  founded  on  the  most 
simple,  natural  and  philosophical  principles. — Bostojv  Evening  Gazette. 

Experience  has  abundantly  proved,  that  a  free  and  quick  hand-writing 
can  be  acquired  by  this  process  in  a  very  few  lessons  ;  an  advantage  which 
the  old  system  does  not  offer  at  the  end  of  two  years'  application. — Albaky 
Evening  Journal. 

Mr.  Foster's  Treatise  is  written  with  conciseness  and  perspicuity,  and  is 
well  worthy  the  attention  of  all  who  are  interested  in  this  branch  of  educa- 
tion.— Boston  Courier. 


3.  FOSTER'S  ELEMENTARY  COPY-BOOKS,  designed 
to  render  the  acquisition  of  Penmanship  simple,  progressive,  and 
agreeable ;  to  save  Teachers  the  trouble  of  setting  copies,  and  to 
furnish  schools  and  families  with  a  practical  system  by  which 
the  art  may  be  taught  with  facility  and  correctness.    Nos.  1  to  8. 

%*  The  slope  of  the  letters,  the  thickness  of  the  down  strokes,  and  the 
points  where  the  hair  strokes  commence,  are  all  indicated  in  the  ruling  with 
mathematical  exactness,  which  produces  a  constant  check  on  carelessness 
and  inadvertency,  and  the  learner  is  thus  enabled  to  acquire  an  elegant  and 
masterly  use  of  the  pen  in  one  third  of  the  time  usually  devoted  to  this  ob- 
ject. 

DESCRIPTION    or    THE    COPY-BOOKS. 

No.  1,  is  designed  for  beginners.  The  copies  are  placed  at  the 
top  of  each  page,  and  consist  of  straight  marks  and  exercises  on  the 
turns ;  leading  progressively  from  the  simplest  rudiments  of  the  art 
to  the  formation  of  letters. 

No.  2,  is  a  continuation  of  No.  1,  and  contains  a  series  of  exercises 
systematically  arranged,  which  are  designed  to  discipline  the  muscular 
powers  of  the  fingers,  and  to  prepare  the  learner  for  the  easy  execu- 
tion of  large  text  hand. 

No.  3,  contains  the  letters  of  the  alphabet,  arranged  according  to 
similarity,  with  reeded  lines  and  grooved  spaces  to  guide  the  learner 
in  the  formation  of  each  letter,  together  with  large  text  copies. 

No.  4,  contains  an  alphabetical  set  of  text  hand  copies,  with  outline 
capitals  ;  designed  and  engraved  in  the  first  style  of  excellence. 

No.  5,  is  a  continuation  of  the  preceding  No.  and  consists  of  a 
series  of  medium  or  round-hand  copies,  each  beginning  with  a  capital, 
and  is  designed  to  prepare  the  learner  for  small-hand. 

No.  6,  consists  of  small,  round-hand  exercises,  and  contains  a 
set  of  small-hand  copies,  alphabetically  arranged,  preparatory  to  the 
lessons  in  running-hand. 

Nos.  7  and  8,  complete  the  system,  and  consist  of  exercises  in 
current-hand ;  being  an  improved  plan  of  teaching  mercantile  pen- 


COMMERCIAL    CORRESPONDENCE.  11 

manship.    The  specific  design  of  these  exercises  is  to  teach  stoifl 
writing. 

The  cover  upon  each  book  contains  practical  directions  to  teachers 
and  pupils,  rules  for  holding  the  pen,  position  of  the  body,  pen-making, 
&c. ;  the  whole  illustrated  with  engravings,  so  that  there  is  nothing 
wanting  in  this  new  system,  to  insure  to  a  pupil  of  ordinary  capacity, 
the  acquisition  of  a  hand- writing  in  which  the  utmost  legibility, 
expedition,  and  elegance  are  combined. 


These  Copy-Books,  are  the  result  of  ten  years'  experience  of  one  of  the 
first  teachers  in  the  United  States,  and  they  cannot  fail  to  secure  to  the 
learner  a  legible  current-hand  writing  in  a  much  less  time  than  is  usually 
consumed.  Their  low  price,  puts  it  in  the  power  of  most  persons  to  avail 
themselves  of  their  advantages.  Each  page  contains  an  engraved  copy, 
and  is  ruled  so  that  the  pupil  cannot  fail  to  learn  the  shape  and  proportion 
of  the  letters. — Eastport  Sentinel. 

Mr.  Foster  has  devoted  himself  successfully  to  the  improvement  of  the  art 
of  writing,  and  has  exhibited  great  ingenuity  in  devising  a  system  which  will 
not  only  relieve  teachers  from  the  trouble  of  setting  copies,  ruling,  &c.,  but 
completely  obviate  the  difficulties  which  have  hitherto  embarrassed  young 
learners  in  their  early  attempts  with  the  pen ;  the  simplicity  and  novelty  of 
the  plan  enabling  the  pupil  to  proceed  in  his  efibrs  with  pleasure,  and  with- 
out labor.  Not  one  in  a  hundred  of  our  primary  schools,  ever  turns  out  a 
single  superior  penman.  But  let  this  system  be  adopted  with  resolution, 
and  pursued  with  perseverance,  and  they  will  annually  supply  their  thousands. 
— Edropean. 

Foster's  Elementary  Copy-Books,  are  an  entirely  new  invention,  unique  in 
principle  and  the  best  calculated  to  impart  ease  in  penmanship,  of  any  that 
we  have  seen.  This  plan  is  "a  labor-saving  machine"  of  incalculable 
value,  both  to  teacher  and  pupil,  by  which  the  latter  cannot  fail  to  acquire, 
without  loss  of  time,  a  uniform,  correct  hand-writing. — Morning  News. 


4.  COMMERCIAL  CORRESPONDENCE;  being  a  series 
of  Letters  connected  with  Foreign  and  Domestic  Trade ;  in- 
cluding the  general  forms  of  Letters  of  Introduction,  Credit, 
and  General  Business,  together  with  Invoices,  Account  Sales, 
Bills  of  Exchange,  &c.  By  B.  F.  Foster.  1  vol.  12mo.  (Jn 
Press.) 


TESTIMONIALS. 

Extract  from  the  Report  of  a  Committee  appointed  to  award 
premiums  for  Penmanship  in  the  Albany  Academy. 

In  awarding  the  premiums,  the  committee  experienced  much 
embarrassment  from  the  almost  equal  proficiency  exhibited  by 
the  pupils.  It  is  in  fact  impossible,  without  denying  the  evidence 
before  us,  to  dispute  the  advantages  of  the  system  taught  by  Mr. 
Foster,  and  the  committee  recommend  it  as  superior  to  all  others 
with  which  they  are  acquainted. 

Richard  Yates, 

Theodore  Olcott,  \  Committee. 

Henry  Bartow, 

Extract  from  the  Report  of  a  Committee  appointed  to  attend  the 
examination  of  the  pupils  in  the  Albany  Female  Seminary. 


OTT,   > 


The  specimens  of  writings  exhibited,  afford  the  most  satisfac- 
tory evidence  of  improvement  in  this  d!rt,  and  tend  at  once  to 
confirm  the  opinion  now  nearly  universal,  of  the  great  superiority 
of  the  system  pursued  by  Mr.  Foster,  and  to  advance  his  high 
reputation  as  an  accomplished  teacher. 

Alfred  Conkling,      ^ 

Edward  C.  Delavan,  >  Committee. 

Samuel  S.  Fowler,     ) 


Mr.  Foster  is  unquestionably  the  first  writing  master  in  this 
city, — if  not  in  this  country, — and  so  far  as  much  observation, 
and  an  acquaintance  with  him  and  his  system,  authorize  us  to 
speak, — utterly  free  from  that  humbug  and  quackery  which  dis- 
grace not  merely  the  profession,  but,  in  some  of  its  results,  the 
whole  Christian  community.  Writing  is  an  art  valuable  in  itself, 
beyond  what  most  persons  are  ready  to  admit.  And  it  is  not 
only  valuable  in  itself,  but  the  easy,  elegant  penman  will  extend 
his  order  and  neatness  into  the  whole  circle  of  his  habits, — 
intellectual,  social  and  moral ; — at  least  such  is  the  tendency. 
He  who  effects  a  reform  in  this  department,  will,  in  our  view, 
be  a  great  public  benefactor, — Boston  Moral  Reformer. 


We  are  personally  acquainted  with  Mr..  Foster,  and  take  great 
pleasure  in  recommending  his  establishment  to  the  notice  of  our 
fellow-citizens.  We  have  examined  his  system  in  detail, — have 
observed  his  mode  of  instruction  in  full  operation, — and  are  fully 
impressed  with  the  practicability  and  utility  of  his  plan.  It 
facilitates  beyond  all  other  methods,  the  attainment  of  a  free, 
elegant,  and  rapid  business  hand. — Boston  Republican. 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE         i 
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WILL   BE   ASSESSED    FOR    FAILURE  TO    RETURN 
THIS    BOOK   ON    THE   DATE   DUE.    THE   PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
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THE  UNIVERSITY  OF  CAUFORNIA  LIBRARY 


